Specifically, the factors include value or how attractively a stock is price relative to fundamentals like book value and free cash flow; momentum or the current up or down trend in a company stock; quality or profitability; and low volatility or the degree of fluctuation in a company’s share price over time.
Goldman Sachs crafted the ETFs in response to increased demand from clients for Goldman investment strategies in an ETF wrapper, especially among its institutional and insurance-based clients. The ActiveBeta ETFs quickly garnered traction among large institutional investors. GSIE has $79.5 million in assets under management, GSLC attracted $350.6 million in assets and GEM has accumulated $554.5 million.
Moreover, the ActiveBeta ETFs have some of the lowest fees among smart beta ETF options. GEM has a 0.45% expense ratio, GSIE has a 0.35% expense ratio and GSLC has a 0.09% expense ratio.
Financial advisors who are interested in learning more about Goldman Sachs’ market outlook can register for the Wednesday, March 2 webcast here.