Goldman Sachs MarketBeta Russell 1000 Value Equity ETF (GVUS)

Overview

The described company operates as an investment fund focused on mirroring the performance of a specific segment of the US equity market. It primarily invests in a mix of equity securities that are part of its underlying index, along with depositary receipts representing these equities, and in some cases directly into the stocks instead of receipts. Its investment strategy is geared towards capitalizing on the value segment of large- and mid-capitalization US equity issuers. The fund applies a capping methodology to its underlying index in an effort to maintain a diversified portfolio and manage concentration risk. This structure aims to offer investors exposure to targeted market segments through a single, managed investment.

Products and Services

The fund provides a simplified investment solution aimed at harnessing the growth potential of the large- and mid-cap value segment of the U.S. equity market. The products and services offered are designed to cater to investors looking for specific market exposures with managed risk, through the following means:

• Equity Securities Investment - The core investment strategy involves allocating at least 80% of the fund's assets towards equity securities that are part of the fund's benchmark index. This approach aims to mirror the index's performance by investing in a balanced mix of large- and mid-capitalization stocks, thereby offering a diversified exposure to the U.S. equity market's value segment.
• Depositary Receipts - In addition to direct equity investments, the fund invests in depositary receipts representing the equity securities included in its underlying index. This allows for greater flexibility in portfolio management and access to stocks that may otherwise be difficult to invest in directly, providing a broader reach of the market's value opportunities.
• Underlying Stocks in lieu of Depositary Receipts - As part of its versatile investment approach, the fund also reserves the option to directly invest in stocks included in the underlying index instead of utilizing depositary receipts. This capability enhances the fund's ability to efficiently manage its portfolio and optimize the investment outcomes, based on prevailing market conditions and opportunities.
• Capping Methodology - To ensure diversification and manage concentration risks within its portfolio, the fund employs a capping methodology on its underlying index. This strategy prevents any single issuer from disproportionately influencing the performance of the fund, thereby aiming to achieve a more stable and predictable investment experience for its shareholders.