The combination of an Average People Pillar rating and a Below Average Process Pillar rating limit  Goldman Sachs Future Consumer Equity ETF to a Morningstar Medalist Rating of Negative.  The portfolio maintains a sizable cost advantage over competitors, priced within the cheapest fee quintile among peers.  

 The strategy earns a Below Average Process Pillar rating. Independent of the rating, analysis of the strategy's portfolio shows it has maintained an overweight in liquidity exposure and an underweight in momentum exposure compared with category peers. High liquidity exposure is attributed to stocks with a high trading volume, lending managers more flexibility. And low momentum exposure is rooted in holding stocks that are not currently on a winning streak and instead holding those that managers believe are undervalued. The strategy’s management team earns an Average People Pillar rating. The strategy's parent organization earns the firm an Average Parent Pillar rating. People Pillar and Parent Pillar ratings for this strategy are indirectly assigned by a Morningstar analyst rather than algorithmically derived. Please see the notes following each pillar section for more details. The details of assigning methods can be found in each pillar section.

Analyst Rating

Amazon

Alphabet

NVIDIA

Mastercard

Apple

Moelis

Disney

NIKE

NextEra Energy

Morningstar's evaluation of this security's process aims to determine the likelihood that it will outperform its Morningstar Category index on a risk-adjusted basis over the long term. Goldman Sachs Future Consumer Equity ETF earns a Below Average Process Pillar rating. 

The process benefits from the size of its portfolio management team. With four portfolio managers at the helm, the fund is reasonably well-resourced. However, the rating is limited by the experience of the management team, which averages five years at this fund. The parent firm's five-year retention rate of 75% also holds the process back.

 This strategy leans toward smaller, higher-growth companies than its average peer in the Global Large-Stock Growth Morningstar Category. Analyzing additional factors, the fund has held stocks with higher trading volumes compared to Morningstar Category Peers in the past few years. This gives the managers more flexibility during bear markets to sell without adversely affecting prices. In recent months, the strategy was more exposed to the Liquidity factor compared with its Morningstar Category peers as well. This strategy has also demonstrated a bias towards lower-momentum stocks over its peers over the past years. Momentum investors tend to expect stocks that have done well recently to continue to do so in the short term. Momentum approaches can entail higher turnover and trading costs since the top stocks can often change. Similarly, in recent months, the strategy also had less exposure to the Momentum factor than peers. In addition, this strategy has not maintained a defensive tilt, demonstrated by low exposure to the quality factor. This means the fund avoids holding firms that are consistently profitable, growing, and have solid balance sheets. Such positions do not tend to provide much ballast for a portfolio. Nevertheless, the fund's Quality exposure was in line with peers in the latest month. More information on a fund and its respective category's factor exposure can be found in the Factor Profile module within the Portfolio section. 

 The portfolio is overweight in communication services and consumer cyclical relative to the category average by 21.3 and 19.8 percentage points, respectively. The sectors with low exposure compared to category peers are technology and healthcare, underweight the average by 13.6 and 13.5 percentage points of assets, respectively. The strategy owns 45 securities and is quite concentrated. In particular, 47.9% of the fund’s assets are housed within the top 10 holdings, as opposed to the category’s 32.1% average. And finally, in terms of portfolio turnover, on a year-over-year basis, 16% of the fund's holdings have turned over, whether through increasing, decreasing, or changing a position.

Below Average

Process

Goldman Sachs Future Consumer Equity ETF earns an Average People Pillar rating. Raj Garigipati brings eight years of listed portfolio management experience to the team. The average Morningstar Rating of the strategies they currently manage is 3.1 stars, demonstrating average risk-adjusted performance. Raj Garigipati draws on a supporting cast of three additional listed managers. Together they average five years of listed portfolio management experience.  The team's personal investments in the fund are unsubstantial, with the maximum investment by any one manager being less than $10,000. That amount is too small to help align managers' interests with the fund's investors. 

 Note: The People Pillar rating is indirectly assigned by an analyst. The longest-tenured manager of the fund also manages a different product rated by an analyst. Their analyst-assigned People Pillar rating is combined here with the People scores (algorithmic or analyst-assigned) for the fund’s other managers on a tenure-weighted basis.

Average

People

Goldman Sachs Asset Management heads into an uncertain direction on multiple fronts, underpinning its Average Parent rating.
GSAM has long struggled with personnel turnover, with a steady degree of analyst departures and additions coinciding with leadership reshufflings over the past few years that includes the September 2022 departure of equity head Katie Koch. Meanwhile, parent company Goldman Sachs elected to merge its asset management and wealth management units in October 2022, reversing a decision to split them in 2020, and assigned Marc Nachmann to lead the unit. Although he is a longtime Goldman veteran, most of his prior experience has been with the firm’s investment bank. Potentially complicating his remit is the firm’s December 2021 acquisition of NN IP, whose traditional and sustainable-investing branches could add capabilities but will take time to integrate. Bolstering the firm’s sustainability credentials could be especially pressing given the SEC’s November 2022 fining of GSAM for past failings in its ESG-related operations. 
GSAM has some strengths worth highlighting. Portfolio-manager ownership statistics across the firm’s U.S. lineup have improved dramatically since the firm instituted a deferred compensation program of fund shares in early 2020, and GSAM has compelling capabilities within its quantitative equity franchise.

Parent

Goldman Sachs Future Consumer Equity ETF

GBUY is actively managed to invest in global stocks associated with priorities and spending habits of younger consumers.

Goldman Sachs Future Health Care Equity ETF

Goldman Sachs Future Real Estate And Infrastructure Equity ETF

Goldman Sachs Asset Management has launched three new actively managed thematic ETFs to add to their suite of funds focused on innovation and disruption: the Goldman Sachs Future Consumer Equity ETF (GBUY), the Goldman Sachs Future Health Care Equity ETF (GDOC), and the Goldman Sachs Future Real Estate and Infrastructure Equity ETF (GREI). The funds [.

Goldman Sachs Expands Thematic Offerings With Three New ETFs

Goldman Sachs Group is offering investors new ways to seek equity gains from disruptive companies, with its asset management business launching three exchange-traded funds focused on secular growth trends.

News for Goldman Sachs Future Consumer Equity ETF ETF (GBUY)