Summary Prospectus
December 29, 2024
Goldman Sachs Future Tech Leaders Equity ETF
Ticker:
GTEK Stock Exchange: NYSE Arca, Inc.
Before you invest, you may want to review the Goldman Sachs Future Tech Leaders 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 Future Tech Leaders Equity ETF (the “Fund”) seeks long-term growth of capital.
| Fees and Expenses of the Fund |
This 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 |
0.75% |
| Distribution and Service (12b-1) Fee |
0.00% |
| Other Expenses |
0.00% |
| Total Annual Fund Operating Expenses |
0.75% |
| 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 |
| $77 |
$240 |
$417 |
$930 |
| 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 48% of the average value of its portfolio.
| Principal Investment Strategies |
The Fund invests, under normal circumstances, at least 80% of its net
assets plus any borrowings for investment purposes (measured at the time of purchase)
(“Net Assets”) in equity investments in U.S. and non-U.S. technology companies, as described below. The Fund seeks to focus on investments in public stock market capitalizations (based upon shares available for trading on an
unrestricted basis at the time of purchase) of less than $100 billion.
Goldman Sachs Asset Management, L.P. (“GSAM” or the
“Investment Adviser”) generally defines a technology company as a company in the
information technology or communication services sectors, or in the internet and direct
marketing retail or healthcare technology industries. The Investment Adviser may use the classifications assigned by third parties but is not required to do so. The Fund seeks to achieve its investment objective by investing in
technology companies that the Investment Adviser believes are driving technological innovation or benefitting from the enablement of technology, and have the potential to grow their business over many
years. The Investment Adviser seeks to identify companies at various growth stages that are developing differentiated technology to either disrupt existing markets, serve existing markets more efficiently, or
apply proven business models to new geographies. The Investment Adviser also invests in companies that use technology to drive long-term compounding revenue growth, as well as more mature technology companies
that are evolving their business models to exploit new growth opportunities.
Equity investments may include common stock, preferred stock, warrants and other rights to acquire stock, American depositary receipts (“ADRs”), European
depositary receipts (“EDRs”) and global depositary receipts (“GDRs”), underlying funds (including exchange-traded funds (“ETFs”)), and futures, forwards, options and other instruments with
similar economic exposures. The Fund may also invest in companies that only recently began to trade publicly. The Fund may invest in underlying ETFs, exchange-traded products (“ETPs”) and/or money market funds,
including those that currently exist or that may become available for investment in the future for which the Investment Adviser or an affiliate now or in the future acts as investment adviser or principal
underwriter. The Fund may also invest in unaffiliated ETFs, ETPs and/or money market
funds.
2 Summary Prospectus — Goldman Sachs Future Tech Leaders Equity ETF
The Fund’s fundamental equity investment process
involves evaluating potential investments based on specific characteristics believed to
indicate high-quality businesses with sustainable growth, including strong business
franchises, favorable long-term prospects and excellent management. The Investment Adviser believes that as a company matures, sustainable free cash flow generation is an indication of quality and sustainable growth and
therefore analyzes and forecasts, among others, a company’s gross profit, operating profit, free cash flow, net cash on its balance sheet, and return on invested capital. The Investment Adviser will also consider the
valuation of companies when determining whether to buy and/or sell securities. The Investment Adviser may decide to sell a position for various reasons, including when a company’s fundamental outlook
deteriorates, because of valuation and price considerations, for risk management purposes, if a company is deemed to be misallocating capital, or if a more attractive risk/reward opportunity becomes available.
The Investment Adviser’s belief may be informed by, among other things, company disclosure,
third-party research, engagement with the companies, or subjective criteria including the Investment Adviser’s own research, expectations, or opinions. A company in which the Fund invests may not currently or in the
future derive any revenue from its efforts to drive technological innovation or benefit from the enablement of technology.
The Investment Adviser employs a fundamental investment process that may integrate environmental, social
and governance (“ESG”) factors alongside traditional fundamental factors. No one factor or consideration is determinative in the stock selection process.
The Fund may invest in foreign securities, including securities of issuers in countries with emerging markets or economies. The Fund may invest without restriction as to company
capitalization and may invest significantly in small- and mid-capitalization
companies.
The Fund concentrates its investments (i.e., holds
more than 25% of its total assets) in securities of issuers in the information technology
industries.
THE FUND IS NON-DIVERSIFIED UNDER THE INVESTMENT COMPANY ACT OF 1940, AS AMENDED (THE “INVESTMENT
COMPANY ACT”), AND MAY INVEST A LARGER PERCENTAGE OF ITS ASSETS IN FEWER ISSUERS THAN
DIVERSIFIED FUNDS.
The Fund is an actively managed ETF, which is a fund that trades like other publicly-traded securities.
The Fund is not an index fund and does not seek to replicate the performance of a specified
index.
The Investment Adviser measures the Fund’s
performance against the MSCI ACWI Select Information Technology + Communication Services
(excluding ˃$100B Market Cap) Index.
| 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.
Goldman Sachs (as defined herein) and its affiliates advise accounts and funds which have investment objectives, investment strategies and/or
policies similar to those of the Fund, and such accounts and funds will have portfolio holdings that overlap with the Fund. Due to differences in tax management considerations and implementation
techniques, trades of the Fund’s portfolio are generally executed after those of such accounts and funds. As a result, the Fund’s investment results may be higher or lower, and
potentially significantly lower, than those of such accounts
and funds.
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 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 and Emerging Countries 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 exchange 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. These risks are
more pronounced in connection with the Fund’s investments in securities of issuers located in, or otherwise economically tied to, emerging countries.
3 Summary Prospectus — Goldman Sachs Future Tech Leaders Equity ETF
Foreign Custody
Risk. The Fund may hold foreign securities and cash with foreign banks, agents, and securities depositories appointed by the Fund’s custodian (each a
“Foreign Custodian”). Some Foreign Custodians may be recently organized or new to the foreign custody business. In some countries, Foreign Custodians may be subject to little or no regulatory oversight over
or independent evaluation of their operations. Further, the laws of certain countries may place limitations on the Fund’s ability to recover its assets if a Foreign Custodian enters bankruptcy. Investments in
emerging markets may be subject to even greater custody risks than investments in more developed markets. Custody services in emerging market countries are very often underdeveloped and may be considerably less
well regulated than in more developed countries, and thus may not afford the same level of
investor protection as would apply in developed countries.
Geographic Risk. If the Fund focuses its investments in issuers located in a particular country or geographic region, the Fund may be subjected, 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.
Industry Concentration Risk. The Fund concentrates its investments in specific industries or groups of industries that have
historically experienced substantial price volatility. The Fund is subject to greater risk of
loss as a result of adverse economic, business, political, environmental or other developments than if its investments were diversified across different industries or groups of industries. Securities of issuers held by the Fund
may lack sufficient market liquidity to enable the Fund to sell the securities at an advantageous time or without a substantial drop in price.
Investment Style Risk. Different investment styles (e.g., “growth”, “value” or “quantitative”) tend to shift in and out of favor depending upon market
and economic conditions and investor sentiment. The Fund may outperform or underperform other funds that invest in similar asset classes but employ different investment styles.
Issuer Concentration Risk. The Fund's portfolio may be comprised of a relatively small number of companies in comparison to
other funds. This relatively small number of issuers may subject the Fund to greater risks,
because a decline in the value of any single investment held by the Fund may adversely affect the Fund’s overall value more than it would affect that of a fund holding a greater number of investments.
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 NYSE Arca, Inc. (“NYSE Arca”) and may, therefore, have a material upward
or downward effect on the market price of the Shares.
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. Events such as war, military conflict, acts of terrorism, social unrest,
natural disasters, recessions, inflation, rapid interest rate changes, supply chain disruptions, sanctions, the spread of infectious illness or other public health threats could also significantly impact the Fund and
its investments.
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. 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 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 and Small-Cap Risk. Investments in mid-capitalization and small-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.
Non-Diversification Risk. The Fund is non-diversified, meaning that it is permitted to invest a larger percentage of its assets in one or more issuers or in fewer issuers than
diversified funds. Thus, the Fund may be more susceptible to adverse developments affecting any single issuer held in its portfolio, and may be more susceptible to greater losses because of these developments.
Stock Risk. Stock prices have historically risen and fallen in periodic cycles. U.S. and foreign stock markets
have experienced periods of substantial price volatility in the past and may do so again in
the future.
Technology Sector Risk. The stock prices of technology and technology-related companies and therefore the value of the Fund may experience significant price
movements as a result of intense market volatility, worldwide competition, consumer preferences, product compatibility, product obsolescence, government regulation, excessive investor optimism or pessimism, or
other factors.
Thematic Investing Risk. The Fund’s thematic investment strategy limits the universe of investment opportunities available
to the Fund and will affect the Fund’s exposure to certain companies, sectors, regions,
and countries, which may result in the Fund forgoing opportunities to buy or sell certain
securities when it might otherwise be advantageous to do so. Adhering to the Fund’s thematic investment strategy may also
4 Summary Prospectus — Goldman Sachs Future Tech Leaders Equity ETF
affect the Fund’s performance relative to similar
funds that do not seek to invest in companies exposed to certain themes. There is no guarantee
that the Investment Adviser’s views, security selection criteria or investment judgment
will reflect the beliefs or values of any particular investor or that companies in which the Fund invests will be successful in their efforts to drive technological innovation or benefit from the enablement of technology. In
addition, the Investment Adviser is not required to monitor on an ongoing basis whether a current holding continues to be associated with driving technological innovation or benefiting from the enablement of
technology. Because such association is assessed at the time the investment is first added to the Fund’s portfolio, the Fund is not required to sell, and may instead add to, positions in holdings that no longer
continue to be associated with driving technological innovation or benefiting from the enablement of technology.
Valuation Risk. The sale price the Fund could receive for a security may differ from the Fund’s valuation of the
security, 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 foreign 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. NAV calculation may also be impacted by operational risks arising from factors such as failures in systems and technology.
| 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”) and
the MSCI ACWI Select Information Technology + Communication Services (excluding ˃$100B Market Cap) Index (the “Performance Benchmark”). The Performance 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 and which the Investment Adviser uses to measure the Fund's performance. 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 these benchmark indices, 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 |
9.72% |
September 30, 2024 |
| During the periods shown in the chart above:
|
Returns |
Quarter ended |
| Best Quarter Return |
18.57% |
December 31, 2023 |
| Worst Quarter Return |
-27.01% |
June 30, 2022 |
| AVERAGE ANNUAL TOTAL RETURN For the period ended
December 31, 2023 |
|
|
|
| 1 Year |
Since
Inception |
Inception
Date | |
| Goldman Sachs Future Tech Leaders Equity ETF |
|
|
9/14/2021 |
| Returns Before Taxes |
33.79% |
-14.51% |
|
| Returns After Taxes on Distributions |
33.71% |
-12.85% |
|
| Returns After Taxes on Distributions and Sale of Fund Shares |
20.06% |
-9.56% |
|
| MSCI ACWI Index |
22.20% |
1.21% |
|
| MSCI ACWI Select Information Technology + Communication Services (excluding ˃$100B Market Cap) Index* |
27.05% |
-5.74% |
|
*
The MSCI ACWI Select Information Technology + Communication
Services (excluding ˃$100B Market Cap) Index is comprised of those companies classified within the Information Technology sector and Communication Services sector within the MSCI ACWI Index and excludes companies with a market capitalization over $100 billion.
Benchmark returns do not reflect any deductions for fees or expenses.
After-tax returns are calculated using the historical highest individual
federal marginal income tax rates and do not reflect the impact of state and local taxes.
Actual after-tax returns depend on an investor’s tax situation and may differ from
those shown. In addition, the after-tax returns shown are not relevant to investors who hold Fund Shares through tax-deferred arrangements such as 401(k) plans or individual retirement accounts.
| Portfolio Management |
Goldman Sachs Asset Management, L.P. is the investment adviser for the
Fund.
Portfolio Managers: Sung Cho, CFA, Managing Director; Charles “Brook” Dane, CFA, Managing Director; Raj Garigipati, Managing Director; and Nathan Lin, Vice
President, have each managed the Fund since September 2021.
5 Summary Prospectus — Goldman Sachs Future Tech Leaders Equity ETF
| 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 Future Tech Leaders Equity ETF
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