Summary Prospectus
December 29, 2024
Goldman Sachs Innovate Equity ETF
Ticker:
GINN Stock Exchange: NYSE Arca, Inc.
Before you invest, you may want to review the Goldman Sachs Innovate 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 , are incorporated by reference into this Summary Prospectus.
| Investment Objective |
The Goldman Sachs Innovate Equity ETF (the “Fund”) seeks to provide investment results that closely correspond, before fees and expenses, to the performance of the Solactive
Innovative Global Equity Index (the “Index”).
| 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 |
0.50% |
| Distribution and Service (12b-1) Fee |
0.00% |
| Other Expenses |
0.00% |
| Total Annual Fund Operating Expenses |
0.50% |
| 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 |
| $51 |
$160 |
$280 |
$628 |
| 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 33% 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 companies that may benefit from technological innovation and the resulting changes in the economy across five key themes (the
“Themes”) that are potential drivers of changes in the economy. Each Theme is divided into multiple sub-themes (the “Sub-Themes”). The Themes are:
◼
Data-Driven World Theme—Companies that are positioned to potentially benefit from the unprecedented proliferation of data, capitalizing on data storage, security and analysis, as well as artificial intelligence and machine learning.
◼
Finance Reimagined Theme—Companies that are positioned to potentially benefit from the evolving financial landscape, from the
digitization of traditional financial services to the development of blockchain
technology.
◼
Human Evolution Theme—Companies that are positioned to potentially benefit from advances in medical treatment and technology, from robotic surgery and precision
medicine to gene therapy and care for an older population.
◼
Manufacturing Revolution Theme—Companies that are positioned to potentially benefit from the technology-driven transformation of the manufacturing industry, including
the emergence of new processes, products and energy sources.
◼
New Age Consumer Theme—Companies that are positioned to potentially benefit from structural shifts in the way we consume goods and services, due to changes in
demographics, technology and consumer preferences.
2 Summary Prospectus — Goldman Sachs Innovate Equity ETF
The Index is comprised entirely of securities that
compose the Solactive Data Driven World Index, the Solactive Finance Reimagined Index, the
Solactive Human Evolution Index, the Solactive Manufacturing Revolution Index, and the
Solactive New Age Consumer Index (the “Solactive Thematic Indexes”), which are designed to provide exposure to the Data Driven World Theme, the Finance Reimagined Theme, the Human Evolution Theme, the Manufacturing
Revolution Theme and the New Age Consumer Theme, respectively. The weight of each index
constituent within the Index is equal to the average weight of such index constituent across
the Solactive Thematic Indexes, subject to specified minimum and maximum
weights.
Solactive AG (the “Index Provider”) determines the
components of each Solactive Thematic Index in accordance with a rules-based methodology that
involves four steps. The following index methodology applies to each Solactive Thematic
Index.
Step
1:
In the first step, the Index Provider
defines a universe of potential index constituents (the “Universe”). The Universe is comprised of companies that meet all the below criteria:
◼
The company’s primary listing must be on a regulated stock exchange approved by the Index Provider;
◼
The company’s stock must have an average daily trading volume over the most recent 1-month period (“ADTV”) of at least $1,000,000 in U.S.
dollars;
◼
The company must have a total market capitalization of at least $500,000,000 in U.S. dollars; and
◼
The company must not be classified as within certain industries by the FactSet Industries and Economic Sectors classification in order to minimize
non-theme-relevant exposures in the Index.
Step 2:
In the second step, the Index Provider screens publicly available information such as financial news,
business profiles, and company publications using keywords that describe the Theme and its
proprietary natural language processing algorithm to identify companies within the Universe
that have or are expected to have significant exposure to a Sub-Theme. In addition, additional company and/or third-party information is screened in order to verify a company’s relevance to at least one
of the Sub-Themes. Securities of issuers whose relevance to at least one of the Sub-Themes
cannot be verified is removed from the Universe.
Step 3:
In the third step, each company identified in Step 2 is assigned a
thematic relevance score with respect to each Sub-Theme. For each Sub-Theme, the Index Provider
identifies 50 companies with the highest thematic relevance scores. The Index Provider then
combines the thematic relevance scores for all Sub-Themes of each company identified to
calculate such company’s overall score. The top 100 companies with the highest overall scores are included in the Solactive Thematic Index. In addition, certain buffer rules are applied to prevent excessive turnover.
Step 4:
In the fourth step, the Index Provider calculates a thematic beta for each index constituent, which is a
quantitative measurement of the exposure of the index constituents to the
applicable Theme. Index constituents are
then weighted according to a function of its market capitalization and thematic beta, subject
to specified minimum and maximum weights.
The Index is normally rebalanced quarterly on the third Friday of each February, May, August and November.
As of December 1, 2024, the Index was comprised of 471 securities that had a market capitalization range of between approximately $75 million and $3.6 trillion from issuers
primarily located in North America, Asia and Europe.
Given the Fund’s investment objective of attempting to
track the 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. Also, unlike many investment companies, the Fund does not attempt to outperform the Index and does not seek temporary defensive positions
when markets decline or appear overvalued.
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 Goldman
Sachs Asset Management, L.P. (“GSAM” or 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 the 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.
Asian Investment Risk. Investing in certain Asian issuers may involve a higher degree of risk and special considerations not
typically associated with investing in issuers from more established economies or securities
markets. The Fund’s investments in Asian issuers increase the risks to the Fund of
conditions and developments that may be particular to Asian countries, such as: volatile economic cycles and/or securities markets; adverse changes to exchange rates; social, political, military, regulatory, economic or
environmental developments; or natural disasters.
Calculation Methodology Risk. The Index relies on various sources of information to assess the criteria of issuers included in the
Index, including fundamental information that may be based on assumptions and estimates.
Neither the Fund, the Investment Adviser nor the Index
3 Summary Prospectus — Goldman Sachs Innovate Equity ETF
Provider can offer assurances that the Index’s
calculation methodology or sources of information will provide 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 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.
European Investment Risk. The Fund is more exposed to the regulatory, economic and political risks of Europe and of the European
countries in which it invests than funds whose investments are more geographically
diversified. Adverse regulatory, economic and political events in Europe may cause the Fund’s investments to decline in value. The economies and markets of European countries are often closely connected and interdependent, and events
in one country in Europe can have an adverse impact on other European countries. The Fund makes
investments in securities of issuers that are domiciled in, or have significant operations
in, member countries of the European Union (“EU”) that are subject to economic and monetary controls that can adversely affect the Fund’s investments. The European financial markets have experienced volatility
and adverse trends in recent years and these events have adversely affected the exchange rate of the euro and may continue to significantly affect European countries. On January 31, 2020, the United Kingdom
(“UK”) withdrew from the EU (commonly known as “Brexit”), which has resulted in ongoing market volatility and caused additional market disruption on a global basis. The UK and the EU signed the EU-UK Trade and
Cooperation Agreement (“TCA”), which is an agreement on the terms governing certain aspects of the EU’s and UK’s relationship post Brexit. However, under the TCA, many aspects of the EU-UK
relationship remain subject to further negotiation. The full effects of Brexit are unknown at this time and could negatively impact the value of the Fund’s investments.
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, 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.
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.
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,
4 Summary Prospectus — Goldman Sachs Innovate Equity ETF
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. 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 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.
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 relies on the Index Provider for the identification of themes and sub-themes and its performance may suffer if such themes or sub-themes are
not correctly identified or if a theme or sub-theme develops in an unexpected manner. Performance may also suffer if the stocks included in the Index do not benefit from the
development of such themes or sub-themes. Performance may also be impacted by the inclusion of non-theme-relevant exposures in the Index. There is no guarantee that the
Index will reflect the theme and sub-theme exposures intended.
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 local 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. As the Index may consist of relatively few securities or issuers, tracking error may be heightened at times that the Fund is limited
by restrictions on potential investments.
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 a 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.
5 Summary Prospectus — Goldman Sachs Innovate Equity ETF
| 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
Fund's Index. 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, please
see “Additional Benchmark Information” on page 43 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 |
16.40% |
September 30, 2024 |
| During the periods shown in the chart above:
|
Returns |
Quarter ended |
| Best Quarter Return |
13.69% |
December 31, 2023 |
| Worst Quarter Return |
-21.97% |
June 30, 2022 |
| AVERAGE ANNUAL TOTAL RETURN For the period ended
December 31, 2023 |
|
|
|
| 1 Year |
Since
Inception |
Inception
Date | |
| Goldman Sachs Innovate Equity ETF |
|
|
11/6/2020 |
| Returns Before Taxes |
29.90% |
2.35% |
|
| Returns After Taxes on Distributions |
29.57% |
0.77% |
|
| Returns After Taxes on Distributions and Sale of Fund Shares |
17.90% |
0.73% |
|
| Solactive Innovative Global Equity Index (Net total Return, Unhedged, USD) |
30.07% |
2.50% |
|
| MSCI ACWI Index |
22.20% |
8.48% |
|
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 Manager: Raj Garigipati, Managing Director, has managed the Fund since November 2020.
| 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.