Goldman Sachs Acs Infl Protd USD Bd ETF's Average Process Pillar and People Pillar ratings result in a Morningstar Medalist Rating of Neutral. The portfolio maintains a cost advantage over competitors, priced within the cheapest fee quintile among peers.  

 The strategy gets an Average Process Pillar. Independent of the rating, analysis of the strategy's portfolio shows it has maintained a significant underweight position in AA rated bonds and an overweight in government bonds compared with category peers. 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

Morningstar's evaluation of this fund's process seeks to understand management's investment philosophy, and whether it has been applied consistently over time and can add value across the market cycle. Goldman Sachs Acs Infl Protd USD Bd ETF earns an Average Process Pillar rating.    The leading factor in the rating is that this fund tracks an index. Historical data, such as Morningstar's Active/Passive Barometer, finds that passively managed funds have generally outperformed their active counterparts, especially over longer time horizons. The process is limited by the parent firm's five-year retention rate of 75%, which suggests it could do more to retain its portfolio managers.

 Compared with other funds in the Inflation-Protected Bond Morningstar Category, this fund takes on significantly lower credit risk. But in terms of long-term interest-rate sensitivity, it hews closely to its average peer over the past few years. Opening the analysis to additional factors, the portfolio has displayed biases over time, whether towards or away from certain fixed-income instruments. Compared with the average strategy in the category, the managers have been significantly underweight AA rated bonds in recent years. In the latest month, the strategy has also relatively underweighted AA rated bonds compared with Morningstar Category peers. Additionally, the fund has exhibited a notable sector bias towards government bonds over the past few years. Compared with category peers, the strategy had more exposure to government bonds in the most recent month. Finally, during the past few years, the fund leaned towards debt with seven- to 10-year maturities. In this month, the strategy also leaned more towards debt with seven- to 10-year maturities compared with its peers.

 This strategy's 12-month yield is 2.8%, lower than its average peers' 4.8%. In addition, it has a 0.5% 30-day SEC yield (a standardized, point-in-time estimate of the fund’s future income return). Typically, a lower yield comes with the benefit of less credit risk. The portfolio has a higher average surveyed credit quality of AAA, compared with the typical peers' AA, and it holds no non-investment-grade assets, similar to its peers' average. Strategies with lower credit risk can typically withstand market turmoil more effectively.

Average

Process

Goldman Sachs’s team is valuable but does not stand out as one of the industry's best, warranting an Average People Pillar rating. There are two managers listed on the fund: David Westbrook, Todd Henry. Experience on the team is abundant, with 10 years of average portfolio management experience. Together, they manage a total of eight strategies, with mixed prospects. The asset-weighted average Morningstar Medalist Rating across the strategies is Neutral. This means, in aggregate, they are not positioned to deliver positive alpha relative to the category median.  

 Note: This People Pillar rating is indirectly assigned by an analyst. Morningstar analysts evaluate the People Pillar for passive products at the brand level and may also differentiate by asset class. There is at least one other passive strategy at the firm that is covered by a Morningstar analyst, so the People Pillar rating of the fund is inherited from the rating that the Morningstar analyst assigned to investment vehicles under the same brand name.

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 Access Inflation Protected USD Bond ETF

GTIP tracks an index of off-the-run US Treasury inflation-protected securities with at least one year remaining in maturity.

Goldman Sachs TreasuryAccess 0-1 Year ETF

GS ETF Trust Shs Access High Yield Corp Bond Fund

Goldman Sachs Access Investment Grade Corporate Bond ETF

Goldman Sachs Access Ultra Short Bond ETF

As we consider risks in the fixed income markets today, investors can turn to smart beta bond exchange traded fund strategies to better position for the unusual environment. In the recent webcast, Fixed Income is Back.

A Smart ETF Approach to Bond Markets Today

Many investors and analysts fear that the Federal Reserve's plan to fight inflation through aggressive rate hikes will push the U.S. economy into a recession.

Protect Against Sky-High Inflation With This Unconventional TIPS Fund

VanEck Investment Grade Floating Rate ETF

Vanguard Short-Term Inflation-Protected Securities ETF

The month of July saw the consumer price index rise 0.6%, which may make fixed income investors more aware of what inflation will do in the coming months. With that in mind, fixed income investors can use options to protect their return on bonds if inflation keeps ticking higher.

Investors Can Keep This ETF in Their Back Pocket if Inflation Rises

IQ Real Return ETF

With oil prices seemingly in the gutter, a bounce is likely expected, but for now, the commodity is causing inflationary expectations to take a back seat.

Oil Could Seal the Fate of TIPS Investors in the Short Term

When looking at optimal fixed-income allocations, financial advisors are considering ways to incorporate ETFs to diminish overall portfolio risks better and enhance yield generation. “When you think about the returns that global fixed-income has produced over the last call-it five-years, it’s not normal, right?

News for Goldman Sachs Access Inflation Protected USD Bond ETF ETF (GTIP)