GOLDMAN SACHS ACTIVE BETA EMERGING MARKETS EQUITY UCITS ETF

Issuer: Goldman Sachs

Asset Class: Equity

TER: 49bps

Trading Currency: USD

Pays Income: False

Listing Date: 07 Nov 2019

Ticker: GSEM

ISIN: IE00BJ5CMD00

This fund offers a strategic approach to investing in emerging market equities, moving beyond traditional market-capitalization-weighted strategies. It aims to deliver enhanced performance by systematically selecting stocks based on four well-regarded equity factors: value (identifying undervalued companies), momentum (targeting stocks with strong recent performance), quality (focusing on financially robust firms with stable earnings), and low volatility (including stocks with historically lower price fluctuations). By combining these distinct factors, the portfolio seeks to generate a more attractive risk-adjusted return profile over a complete market cycle compared to conventional passive index funds that can often become concentrated in a few large, potentially overvalued companies.

The methodology is rules-based and transparent, providing a disciplined way to access the growth potential of developing economies. This investment is designed for those looking to build a core emerging markets position but want to incorporate a more sophisticated, factor-driven framework. It can serve as a compelling alternative to both purely passive and traditional active management, offering the potential for outperformance while maintaining the benefits of a structured, cost-effective investment vehicle. The strategy is particularly suitable for long-term investors who believe that a systematic tilt towards companies with proven characteristics of value, quality, momentum, and stability can lead to superior outcomes.