Summary Prospectus
December 29, 2024
Goldman Sachs ActiveBeta® World
Low Vol Plus Equity ETF
Ticker: GLOV Stock Exchange: Cboe BZX Exchange, Inc.
Before you invest, you may want to review the Goldman Sachs ActiveBeta® World Low Vol Plus Equity ETF (the “Fund”) Prospectus, which contains more information about the Fund and its risks. You can find the Fund’s Prospectus, reports to shareholders and other information about the Fund online at dfinview.com/GoldmanSachs. You can also get this information at no cost by calling 800-621-2550 or by sending an e-mail request to gs-funds-document-requests@gs.com. The Fund’s Prospectus and Statement of Additional Information (“SAI”), both dated December 29, 2024, are incorporated by reference into this Summary Prospectus.
| Investment Objective |
The Goldman Sachs
ActiveBeta® World Low Vol Plus Equity ETF (the “Fund”) seeks to provide investment results that closely correspond, before fees and expenses,
to the performance of the Goldman Sachs
ActiveBeta® World Low Vol Plus Equity Index (the “Index”).
| Fees and Expenses of the Fund |
The following table describes the fees and expenses that you may pay if
you buy, hold and sell Shares of the Fund. You may pay other fees, such as brokerage commissions and other fees to financial
intermediaries, which are not reflected in the table and
Example below.
Annual Fund Operating Expenses
(expenses that you pay each year as a percentage of the value of your
investment)
| Management Fee |
0.25% |
| Distribution and Service (12b-1) Fee |
0.00% |
| Other Expenses |
0.00% |
| Total Annual Fund Operating Expenses |
0.25% |
| Expense Example |
This Example is intended to help you compare the cost of owning Shares
of the Fund with the cost of investing in other funds. The Example assumes that you invest $10,000 in the Fund for the time periods indicated and then sell all of your Shares at the end of those periods. The Example also assumes
that your investment has a 5% return each year and that the Fund’s operating expenses remain the same. Although your actual costs may be higher or lower, based on these assumptions your costs would be:
| 1 Year |
3 Years |
5 Years |
10 Years |
| $26 |
$80 |
$141 |
$318 |
| Portfolio Turnover |
The Fund may pay transaction costs when it buys and sells securities or
instruments (i.e., “turns over” its portfolio). A high rate of portfolio turnover may result in increased
transaction costs, including brokerage
commissions, which must be borne by the Fund and its shareholders, and is also likely to result in higher
short-term capital gains for taxable shareholders. These costs are not reflected in total annual fund operating expenses or in the expense example above, but are reflected in the Fund’s performance. The
Fund’s portfolio turnover rate for the fiscal year ended August 31, 2024 was 25% of the average value of its portfolio.
| Principal Investment Strategies |
The Fund seeks to achieve its investment objective by investing at least
80% of its assets (exclusive of collateral held from securities lending) in securities
included in its underlying index, in depositary receipts representing securities included in its underlying index and in underlying stocks in respect of depositary receipts included in its underlying index. The Index is
designed to deliver exposure to large- and mid-capitalization equity securities of developed market issuers, including the United States. The Index is constructed using the patented ActiveBeta® Portfolio Construction Methodology, which was developed to provide exposure to the “factors” (or characteristics) that are commonly tied to a
stock’s outperformance relative to market returns. These factors include low volatility (i.e., a relatively low degree of fluctuation in a company’s share price over time), value (i.e., how attractively a stock is priced
relative to its “fundamentals,” such as book value and free cash flow), momentum (i.e., whether a company’s share price is trending up or down), and quality (i.e., profitability). The Index seeks to provide exposure to
these factors with an emphasis on the low volatility factor. Given the
Fund’s investment objective of attempting to track its Index, the Fund does not follow traditional methods of active investment management, which may involve buying and selling securities
based upon analysis of economic and market factors.
Goldman Sachs Asset Management, L.P. (the “Index
Provider”) constructs the Index in accordance with a rules-based methodology that
involves three steps.
2 Summary Prospectus — Goldman Sachs ActiveBeta®
World Low Vol Plus Equity ETF
Step 1
In the first step, the individual factor subindex for low volatility (the “ActiveBeta® Low Volatility Factor Subindex”) is created from the constituents of the Solactive GBS Developed Markets Large & Mid Cap Index (the
“Reference Index”), a market capitalization-weighted index. Each constituent is
assigned a “factor score” based on a specified volatility measurement that is a composite of the inverse of the standard deviation of past 12-month daily total stock returns and the inverse of market
capitalization. Securities with a factor score that is above a fixed “Cut-off Score” receive an overweight in the ActiveBeta® Low Volatility Factor Subindex relative to the Reference Index and securities with a factor score that is below the Cut-off Score receive an underweight in
the ActiveBeta® Low Volatility Factor Subindex relative to the Reference Index. Accordingly, the magnitude of overweight or underweight that a
security receives in constructing
the ActiveBeta® Low Volatility Factor Subindex is determined by the performance of its factor score relative to the
fixed “Cut-off Score.” The Index includes only long positions (i.e., short positions are impermissible), so the smallest weight for any given security is zero.
Step 2
In the second step, individual factor subindexes for value,
momentum and quality (the “ActiveBeta® Value Factor Subindex, ActiveBeta® Momentum Factor Subindex and ActiveBeta® Quality Factor Subindex,” respectively) are created from the constituents of the ActiveBeta® Low Volatility Factor Subindex. To construct each of these subindexes, all constituents in the
ActiveBeta® Low Volatility Factor Subindex are assigned a “factor score” based on certain specified measurements (i.e.,
in the case of the value factor, the factor score is based on a composite of book
value-to-price, sales-to-price and free cash flow-to-price). Securities with a factor score
that is above a fixed “Cut-off Score” receive an overweight in the applicable ActiveBeta® Factor Subindex relative to the ActiveBeta® Low Volatility Factor Subindex and securities with a factor score that is below the Cut-off Score receive an underweight the applicable ActiveBeta® Factor Subindex relative to the ActiveBeta® Low Volatility Factor Subindex.
Step 3
In the third step, the ActiveBeta® Value Factor Subindex, ActiveBeta® Momentum Factor Subindex, and ActiveBeta® Quality Factor Subindex are combined in equal weights to form the Index.
The Index is rebalanced on a quarterly basis in accordance with the published rebalancing schedule of the
Reference Index.
As of December 1, 2024, the Index consisted of 446 securities with a market capitalization range of between approximately $2.0 billion and $3.6 trillion in the following
countries: Australia, Austria, Belgium, Canada, Denmark, Finland, France, Germany, Hong Kong, Ireland, Israel, Italy, Japan, Netherlands, New Zealand, Norway, Portugal, Singapore, Spain, Sweden, Switzerland,
the United Kingdom and the United States. The components of the Index may change over time. The
percentage of the portfolio exposed to any asset class, country or geographic region will
vary from time to time as the weightings of the securities within the Index change, and the Fund may not be invested in each asset class, country or geographic region at all times. The Index Provider determines whether an
issuer is located in a particular country
by reference to the Reference Index methodology. Solactive AG, which constructs the Reference Index, will
generally deem an issuer to be located in a particular country if it is organized under the laws of the particular country and it is primarily listed in the particular country; in the event that these factors
point to more than one country, the Reference Index methodology provides for consideration of the issuer’s country of domicile and country of risk.
The Index is comprised of equity securities, including American Depositary Receipts (“ADRs”)
and Global Depositary Receipts (“GDRs”). The Fund seeks to invest in the Index components in approximately the same weighting that such components have within the Index at the applicable time. The
Fund may purchase a sample of securities in its Index. There may also be instances in which the
Investment Adviser may choose to underweight or overweight a security in the Fund’s
Index, purchase securities not in the Fund’s Index that the Investment Adviser believes are appropriate to substitute for certain securities in such Index or utilize various combinations of other available investment techniques.
The Fund may concentrate its investments (i.e., hold more than 25% of its total assets) in a particular
industry or group of industries to the extent that its Index is concentrated. The degree to
which components of the Index represent certain sectors or industries may change over
time.
| Principal Risks of the Fund |
Loss of money is a risk of investing in the Fund. An investment in the Fund is not a bank deposit and is not insured or guaranteed by the
Federal Deposit Insurance Corporation (“FDIC”) or any government agency. The Fund should not be relied upon as a complete investment program.
There can be no assurance that the Fund will achieve its investment objective. Investments in the Fund involve substantial risks which prospective investors should consider
carefully before investing. The Fund's principal risks are presented below in alphabetical order, and not in the order of importance or
potential exposure.
Calculation Methodology Risk. The Index relies on various sources of information to assess the criteria of issuers included in the
Index (or the Reference Index), including fundamental information that may be based
on assumptions and estimates. Neither the Fund, the Index Provider, Solactive AG (the
“Calculation Agent”) nor the Investment Adviser can offer assurances that the Index’s calculation methodology or sources of information will provide an accurate assessment of included issuers or a correct valuation of
securities, nor can they guarantee the availability or timeliness of the production of the
Index.
Depositary Receipts
Risk. Foreign securities may trade in the form of depositary receipts, which include ADRs and GDRs (collectively “Depositary Receipts”). To
the extent the Fund acquires Depositary Receipts through banks which do not have a contractual relationship with the foreign issuer of the security underlying the Depositary Receipts to issue and service such
unsponsored Depositary Receipts, there may be an increased possibility that the Fund would not become aware of and be able to respond to corporate actions such as stock splits or rights offerings involving
the foreign issuer in a timely manner. In addition, the lack of information may result in inefficiencies in the valuation of such instruments. Investment in Depositary Receipts does not eliminate all the risks inherent
in investing in securities of non-U.S. issuers. The market value of Depositary Receipts is dependent upon the market value of the underlying securities and fluctuations in the relative value of the currencies in
which the Depositary Receipts and the underlying securities are quoted. The issuers of Depositary Receipts
3 Summary Prospectus — Goldman Sachs ActiveBeta®
World Low Vol Plus Equity ETF
may discontinue issuing new Depositary Receipts and withdraw existing Depositary Receipts at any time,
which may result in costs and delays in the distribution of the underlying assets to the Fund and may negatively impact the Fund’s performance.
Foreign Risk. Foreign securities may be subject to risk of loss because of more or less foreign government regulation; less public information; less stringent investor
protections; less stringent accounting, corporate governance, financial reporting and disclosure standards; and less economic, political and social stability in the countries in which the Fund invests. The imposition of
sanctions, exchange controls (including repatriation restrictions), confiscations, trade restrictions (including tariffs) and other government restrictions by the United States and other governments, or from problems in
share registration, settlement or custody, may also result in losses. The type and severity of sanctions and other similar measures, including counter sanctions and other retaliatory actions, that may be imposed
could vary broadly in scope, and their impact is impossible to predict. For example, the imposition of sanctions and other similar measures could, among other things, cause a decline in the value and/or
liquidity of securities issued by the sanctioned country or companies located in or economically tied to the sanctioned country and increase market volatility and disruption in the sanctioned country and throughout
the world. Sanctions and other similar measures could limit or prevent the Fund from buying and
selling securities (in the sanctioned country and other markets), significantly delay or
prevent the settlement of securities transactions, and significantly impact the Fund’s liquidity and performance. Foreign risk also involves the risk of negative foreign currency rate fluctuations, which may cause the value of
securities denominated in such foreign currency (or other instruments through which the Fund has exposure to foreign currencies) to decline in value. Currency exchange rates may fluctuate significantly over short
periods of time.
Geographic Risk. If the Fund focuses its investments in issuers located in a particular country or geographic region, it
will subject the Fund to a greater extent than if investments were less focused, to the risks of volatile economic cycles and/or conditions and developments that may be particular to that country or
region, such as: adverse securities markets; adverse exchange rates; adverse social, political, regulatory, economic, business, environmental or other developments; or natural disasters.
Index Risk. The Fund will be negatively affected by general declines in the securities and asset classes represented in the Index. In addition, because the Fund is not
“actively” managed, unless a specific security is removed from the Index, the Fund generally would not sell a security because the security’s issuer was in financial trouble, and the Fund does not take defensive
positions in declining markets. Market disruptions and regulatory restrictions could have an adverse effect on the Fund’s ability to adjust its exposure to the required levels in order to track the Index. The Index Provider
relies on third party data it believes to be reliable in constructing the Index, but it does not guarantee the accuracy or availability of any such third party data, and there is also no guarantee with respect to the
accuracy, availability or timeliness of the production of the Index.
Industry Concentration Risk. In following its methodology, the Index from time to time may be concentrated to a significant degree in
securities of issuers located in a single industry or group of industries. To the extent that
the Index concentrates in the securities of issuers in a particular industry or group of industries, the Fund also may concentrate its investments to approximately the same extent. By concentrating its investments in an industry or group
of industries, the Fund may face more risks than if it were diversified broadly over numerous industries
or groups of industries. If the Index is not concentrated
in a particular industry or group of industries, the Fund will not concentrate in a
particular industry or group of industries.
Investment Style Risk. The Index is intended to provide exposure to certain equity markets, and as a result the Index may be more volatile than a more broadly based
conventional index. The Fund may outperform or underperform other funds that invest in similar asset classes but employ different investment styles.
Large Shareholder Risk. Certain shareholders, including other funds advised by the Investment Adviser, may from time to time own a substantial amount of the Fund’s
Shares. In addition, a third party investor, the Investment Adviser or an affiliate of the Investment Adviser, an authorized participant, a lead market maker, or another entity (i.e., a seed investor) may invest in the Fund and hold its investment solely to facilitate commencement of the Fund or to facilitate the Fund’s achieving a
specified size or scale. Any such investment may be held for a limited period of time. There can be no assurance that any large shareholder would not redeem its investment, that the size of the Fund would be
maintained at such levels or that the Fund would continue to meet applicable listing requirements. Redemptions by large shareholders could have a significant negative impact on the Fund, including on the
Fund’s liquidity. In addition, transactions by large shareholders may account for a large percentage of the trading volume on Cboe BZX Exchange, Inc. (“Cboe”) and may, therefore, have a material
upward or downward effect on the market price of the Shares.
Low Volatility Risk. The Fund relies on the Index Provider for the identification of equity securities with low volatility in
their share prices and its performance may suffer if such securities are not correctly
identified or if a portfolio comprised of such securities exhibits more volatility than
intended. The value of securities in the Fund’s portfolio is subject to fluctuations due to factors affecting individual securities, particular industries or group of industries, or the markets generally. There can be no guarantee that the
prices of such securities will be less volatile than the market as a whole, and could be more volatile. In additional, low volatility equity securities are likely to underperform the broader market during periods
of rapidly rising equity prices.
Market Risk. The value of the securities in which the Fund invests may go up or down in response to the
prospects of individual companies, particular sectors or governments and/or general economic conditions throughout the world due to increasingly interconnected global economies and financial markets.
Market Trading Risk. The net asset value (“NAV”) of the Fund and the value of your investment may fluctuate. Market
prices of Shares may fluctuate, in some cases significantly, in response to the Fund’s NAV, the intraday value of the Fund’s holdings and supply and demand for Shares. The Fund faces numerous
market trading risks, including disruptions to creations and redemptions, the existence of extreme market volatility or potential lack of an active trading market for Shares. Any of these factors, among
others, may result in Shares trading at a significant premium or discount to NAV, which will be reflected in the intraday bid/ask spreads and/or the closing price of Shares as compared to NAV. In addition, because
liquidity in certain underlying securities may fluctuate, Shares may trade at a larger premium or discount to NAV than shares of other kinds of ETFs. If a shareholder purchases Shares at a time when the market price is
at a premium to the NAV or sells Shares at a time when the market price is at a discount to the NAV, the shareholder may pay more for, or receive less than, the underlying value
4 Summary Prospectus — Goldman Sachs ActiveBeta®
World Low Vol Plus Equity ETF
of the Shares, respectively. Additionally, in stressed market conditions, the market for Shares may
become less liquid in response to deteriorating liquidity in the markets for the Fund’s underlying portfolio holdings.
The securities held by the Fund may be traded in markets that close at a different time than the stock
exchange on which the Fund's Shares are listed. Liquidity in those securities may be reduced after the applicable closing times. Accordingly, during the time when the Fund's listing exchange is open but after the
applicable market closing, fixing or settlement times, bid-ask spreads and the resulting premium or discount to the Shares' NAV may widen.
Mid-Cap Risk. Investments in mid-capitalization companies involve greater risks than those associated with larger, more established companies. These securities may be
subject to more abrupt or erratic price movements and may lack sufficient market liquidity, and these issuers often face greater business risks.
Stock Risk. Stock prices have historically risen and fallen in periodic cycles. U.S. stock markets have experienced periods of substantial price volatility in the past and may do
so again in the future.
Tracking Error Risk. Tracking error is the divergence of the Fund’s performance from that of the Index. The performance
of the Fund may diverge from that of the Index for a number of reasons. Tracking error may
occur because of transaction costs, the Fund’s holding of cash, differences in accrual of dividends, changes to the Index or the need to meet new or existing regulatory requirements. Unlike the Fund, the returns of the Index are not
reduced by investment and other operating expenses, including the trading costs associated with
implementing changes to its portfolio of investments. Tracking error risk may be heightened
during times of market volatility or other unusual market conditions. The Fund may be required to deviate its investments from the securities and relative weightings of the Index to comply with the Investment
Company Act of 1940, as amended (the “Investment Company Act”), to meet the issuer diversification requirements of the Internal Revenue Code of 1986, as amended (the “Code”),
applicable to regulated investment companies, or as a result of market restrictions or other legal reasons, including regulatory limits or other restrictions on securities that may be purchased by the Investment Adviser and its
affiliates.
Valuation Risk. The sale price the Fund could receive for a security may differ from the Fund’s valuation of the security and may differ from the value used by the
Index, particularly for securities that trade in low volume or volatile markets or that are valued using a fair value methodology. Because non-U.S. exchanges may be open on days when the Fund does not price its Shares,
the value of the securities or assets in the Fund’s portfolio may change on days when investors will not be able to purchase or sell the Fund’s Shares. The Fund relies on various sources to calculate its NAV. The
information may be provided by third parties that are believed to be reliable, but the information may not be accurate due to errors by such pricing sources, technological issues or otherwise.
| Performance |
The bar chart and table below provide an indication of the risks of
investing in the Fund by showing: (a) changes in the performance of the Fund’s Shares
from year to year; and (b) how the average annual total returns of the Fund’s Shares compare to those of a regulatorily required broad-based securities market index (MSCI ACWI Index) (the “Regulatory Benchmark”), the Fund's
Index, and the Solactive GBS Developed Markets Large & Mid Cap USD Index (the “Secondary Benchmark”). The Secondary Benchmark is generally more representative of the market sectors and/or types of investments in which the Fund invests or to which the
Fund has exposure than the Regulatory Benchmark. The Fund has included in the table below the
performance of the Regulatory Benchmark, which represents a broader measure of market
performance, to comply with new regulatory requirements. For additional information
about the Regulatory Benchmark and Secondary Benchmark, please see “Additional
Benchmark Information” on page 36 of the Prospectus. The Fund’s past performance, before and after taxes, is not necessarily an indication of how the Fund will perform in the future. Updated performance information is available at no cost at am.gs.com or by calling the appropriate phone number on the back cover of the Prospectus.
CALENDAR YEAR
| |
Returns |
Quarter ended |
| Year-to-Date Return |
18.15% |
September 30, 2024 |
| During the periods shown in the chart above:
|
Returns |
Quarter ended |
| Best Quarter Return |
9.71% |
December 31, 2023 |
| Worst Quarter Return |
-2.91% |
September 30, 2023 |
5 Summary Prospectus — Goldman Sachs ActiveBeta®
World Low Vol Plus Equity ETF
| AVERAGE ANNUAL TOTAL RETURN For the period ended
December 31, 2023 |
|
|
|
| 1 Year |
Since
Inception |
Inception
Date | |
| Goldman Sachs ActiveBeta World Low Vol Plus Equity ETF |
|
|
3/15/2022 |
| Returns Before Taxes |
16.10% |
6.36% |
|
| Returns After Taxes on Distributions |
15.48% |
3.35% |
|
| Returns After Taxes on Distributions and Sale of Fund Shares |
9.90% |
2.92% |
|
| Goldman Sachs ActiveBeta World Low Vol Plus Equity Index |
15.81% |
6.09% |
|
| Solactive GBS Developed Markets Large & Mid Cap Index |
23.92% |
7.58% |
|
| MSCI ACWI Index |
22.20% |
7.02% |
|
Benchmark returns do not reflect any deductions for fees or expenses.
| Portfolio Management |
Goldman Sachs Asset Management, L.P. is the investment adviser for the Fund (the “Investment Adviser” or
“GSAM”).
Portfolio
Managers: Raj Garigipati, Managing Director, has managed the Fund
since March 2022; and Gauri Sekaria, Vice President, has managed the Fund since April
2024.
| Buying and Selling Fund Shares |
Individual Shares of the Fund may only be purchased and sold in secondary market transactions through a broker or dealer at market price. Because
Shares trade at market prices, rather than NAV, Shares of the Fund may trade at a price greater than NAV (i.e., a premium) or less than NAV (i.e., a
discount).
You may incur costs attributable to the difference
between the highest price a buyer is willing to pay for Shares (bid) and the lowest price a seller is willing to accept for Shares (ask) (the “bid-ask spread”)
when buying or selling Shares in the secondary market.
Recent information, including information about the Fund’s NAV, market price, premiums and discounts, and bid-ask spreads, is included on the Fund’s website at am.gs.com.
| Tax Information |
The Fund’s distributions are taxable, and will be taxed as ordinary income or capital gains, unless you are investing through a tax-deferred
arrangement, such as a 401(k) plan or an individual retirement account. Investments made through tax-deferred arrangements may become taxable upon withdrawal from such arrangements.
| Payments to Broker-Dealers and Other Financial Intermediaries |
If you purchase Shares of the Fund through a broker-dealer or other financial intermediary (such as a bank), GSAM or other related companies may
pay the intermediary for the sale of Fund Shares or related services. These payments may create a conflict of interest by influencing the broker-dealer or other intermediary and your salesperson to recommend the Fund over another investment. Ask your salesperson or visit your financial intermediary’s website for more information.
6 Summary Prospectus — Goldman Sachs ActiveBeta®
World Low Vol Plus Equity ETF
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