GMUN Profile
The Goldman Sachs ETF Trust Goldman aims to provide investors with targeted exposure to the municipal securities market by investing primarily in securities included in its underlying index. The fund seeks to achieve its investment objective by allocating at least 80% of its assets to securities that are part of this index. This index is meticulously designed to track the performance of municipal bonds with remaining maturities ranging from one to fifteen years.
The index employed by the fund is rule-based and incorporates a variety of criteria to assess eligible securities. It includes bonds issued by municipal entities that meet specific requirements related to social and environmental factors. This approach allows the fund to not only capture performance across the municipal bond market but also align with certain socially responsible investing (SRI) principles. By integrating screens that consider social and environmental impacts, the fund offers a way for investors to contribute to sustainable projects while seeking returns.
Municipal securities are debt instruments issued by local governments or their agencies, often used to fund public projects and services. The ETF’s focus on bonds with maturities of one to fifteen years provides a balance between shorter-term and longer-term investments, aiming to offer stability and income potential. The inclusion of socially and environmentally screened bonds can attract investors interested in aligning their portfolios with broader social goals, such as community development and environmental stewardship.
Investors should consider that while the Goldman Sachs ETF Trust Goldman provides exposure to municipal securities with an emphasis on sustainability, it also carries risks typical of the municipal bond market. These include interest rate risk, credit risk, and market volatility. The fund’s integration of social and environmental criteria may also impact the selection and performance of its holdings. Overall, the ETF is designed for investors seeking a blend of financial returns and alignment with responsible investing principles in the municipal bond sector.
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