GOLDMAN SACHS ACTIVEBETA US LARGE CAP EQUITY ETF

Issuer: Goldman Sachs

Asset Class: Equity

TER: 14bps

Trading Currency: USD

Pays Income: False

Listing Date: 26 Sep 2019

Ticker: GSLC

ISIN: IE00BJ5CNR11

This fund provides exposure to the U.S. large-cap equity market with a strategic twist. Instead of following a traditional market capitalization-weighted approach, this product tracks a proprietary index designed to capture enhanced returns through a multi-factor methodology. The underlying index systematically selects and weights stocks based on four well-established drivers of long-term performance: value (stocks that appear cheap relative to their fundamentals), momentum (stocks with strong recent performance), quality (companies with stable earnings and strong balance sheets), and low volatility (stocks with lower price fluctuations). By combining these factors, the strategy aims to deliver a more favorable risk-adjusted return profile compared to standard benchmark indices.

This investment vehicle is suitable for investors seeking core exposure to the U.S. stock market but who believe that a simple market-cap approach can be improved upon. The ActiveBeta® methodology provides a rules-based, transparent, and cost-effective way to tilt a portfolio towards stocks with characteristics that have historically been associated with outperformance. By diversifying across four distinct factors, the fund seeks to avoid the cyclicality of any single factor, potentially offering more consistent performance through different market environments. It represents a 'smart beta' approach, blending the benefits of passive investing, such as low costs and transparency, with active insights embedded within the index construction rules.