GSSC Profile
The Goldman Sachs ActiveBeta U.S. Small Cap Equity ETF is strategically designed to offer targeted exposure to the equity securities of small-cap U.S. companies. The fund aims to achieve its investment objective by investing at least 80% of its assets in securities that are part of its underlying index. This includes direct investments in small-cap stocks, as well as depositary receipts representing these securities and the underlying stocks related to those receipts.
The index tracked by the fund is meticulously crafted to capture the performance of small-cap U.S. equities, providing a focused approach to investing in companies with smaller market capitalizations. Small-cap stocks are often characterized by higher growth potential but may also come with increased volatility compared to their larger-cap counterparts. The index employs a set of criteria to select and weight companies based on factors such as market capitalization, liquidity, and financial metrics.
In addition to investing in the securities of the index, the fund may also hold depositary receipts, which represent shares of foreign companies traded on U.S. exchanges, and underlying stocks associated with these receipts. This approach allows for a more comprehensive investment strategy, encompassing both direct and indirect exposures to small-cap companies. By including these various types of securities, the fund aims to enhance diversification and capture a broad spectrum of growth opportunities within the small-cap sector.
Investors should be aware that small-cap stocks, while offering significant growth potential, also come with higher risks compared to large-cap stocks. The performance of the Goldman Sachs ActiveBeta U.S. Small Cap Equity ETF is closely linked to the fluctuations in the small-cap market segment. The fund’s focus on small-cap equities and its investment strategy targeting these securities are designed to provide investors with the opportunity to benefit from the growth and dynamics of smaller U.S. companies, albeit with an understanding of the associated risks and market volatility.
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