Goldman Sachs Alpha Enhanced Equity Active ETF
| Issuer: Goldman Sachs |
| Asset Class: Equity |
| TER: 40bps |
| Trading Currency: GBP |
| Pays Income: False |
| Listing Date: 12 May 2025 |
| Ticker: GSWD |
| ISIN: IE000UFAX9L6 |
This actively managed fund aims to achieve long-term capital growth by investing in a diversified portfolio primarily composed of equity securities from large-capitalization companies based in the United States. The core objective is to deliver enhanced returns compared to the broader US large-cap equity market. By employing a systematic and disciplined investment process, the fund seeks to identify and capitalize on market inefficiencies and specific stock characteristics that have historically been associated with outperformance, offering a potential source of alpha for an investor's portfolio.
The investment strategy is powered by a proprietary, rules-based quantitative model. This model systematically analyzes a vast universe of US large-cap stocks based on four fundamental factors known for their potential to drive long-term risk-adjusted returns. These factors are: Value, which targets companies that appear undervalued relative to their fundamentals; Momentum, focusing on stocks with strong recent price performance; Quality, identifying financially sound and stable companies; and Low Volatility, which selects companies that exhibit lower-than-average price fluctuations. The fund's portfolio is then constructed by combining these factor insights to create a diversified holding of securities.
By integrating these four distinct factors, the fund seeks to deliver a more robust and consistent return profile over a full market cycle. This multi-factor approach allows for dynamic adaptation, aiming to benefit from both individual stock selection and the strategic allocation across the different performance-driving factors. It is designed for investors seeking a core US equity holding that goes beyond simple market-cap weighting, offering a sophisticated, factor-based approach to potentially enhance portfolio outcomes while managing risk.
