Summary Prospectus
December 29, 2024
Goldman Sachs Bloomberg Clean Energy Equity ETF
Ticker:
GCLN Stock Exchange: Cboe BZX Exchange, Inc.
Before you invest, you may want to review the Goldman Sachs Bloomberg Clean Energy 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 Bloomberg Clean Energy Equity ETF (the
“Fund”) seeks to provide investment results that closely correspond, before fees
and expenses, to the performance of the Bloomberg Goldman Sachs Global Clean Energy 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 |
0.45% |
| Distribution and Service (12b-1) Fee |
0.00% |
| Other Expenses |
0.00% |
| Total Annual Fund Operating Expenses |
0.45% |
| 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 |
| $46 |
$144 |
$252 |
$567 |
| 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
52% 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 are expected to have a significant impact on
energy decarbonization through their exposure to clean energy which includes, but is not limited to, clean power infrastructure (generation, transmission and distribution), solar energy, wind energy,
energy storage, hydrogen energy, energy digitalization and bioenergy. The Index is a free
float-adjusted market capitalization-weighted index designed to identify relevant companies
using curated data acquired from a variety of sources by Bloomberg Professional Services (the “Index Provider”). Some of the clean energy companies in which the Fund invests may have operations that involve traditional
energy facilities (including oil, gas or other hydrocarbons). The Index Provider constructs the Index in accordance with a rules-based methodology that involves three steps.
Step 1
In the first step, the Index Provider defines a universe of
potential index constituents (the “Universe”) by identifying securities that are
constituents of the Bloomberg Global Equity Index and classified to be within clean energy
sectors by Bloomberg New Energy Finance (“BNEF”). BNEF is a strategic research provider covering global commodity markets and the disruptive technologies driving the transition to a low-carbon economy.
Step 2
In the second step, the Index Provider screens the Universe for thematic relevance to clean energy and
estimates the proportion of an issuer’s value attributable to clean energy activities. The Index Provider’s estimates are based on quarterly data reviews by sector
2 Summary Prospectus — Goldman Sachs Bloomberg Clean Energy Equity ETF
specialists using reported segment
revenues, along with any other available metrics such as segmented earnings before interest, taxes, depreciation and amortization (“EBITDA”), alignment with the European Union’s Taxonomy
Regulation, current and planned activities of the issuer, and expected growth of clean energy-relevant business lines relative to other business lines.
Thematic relevance is then divided into four categories based on
percentage of a company’s value attributed to clean energy activities: A4 (Minor Driver
of Decarbonization) – 10% or Less, A3 (Moderate Driver of Decarbonization) – 10% to 24%, A2 (Considerable Driver of Decarbonization) – 25% to 49% and A1 (Main Driver of Decarbonization) – 50% to 100%.
Securities of issuers within category A4 (Minor) or Environmental, Social, and Governance
(“ESG”)-controversial securities, and securities with high carbon impact and poor
mitigation plans are excluded from the Index.
Step 3
In the third step, the Index constituents are grouped by thematic
relevance categories to maximize relevance and impact. Each thematic category is assigned a
weighting to maximize exposure to securities with the greatest impact to de-carbonization as
follows:
◼
60% of the Index weight is in securities classified as A1 (Main Driver of Decarbonization).
◼
30% of the Index weight is in securities classified as A2 (Considerable Driver of Decarbonization).
◼
10% of the index weight is in securities classified as A3 (Moderate Driver of Decarbonization).
Within each category, the weight for a single security is capped at a
specified level that varies by category. Any excess weight resulted from capping is
redistributed proportionally across the remaining uncapped securities in the
Index.
The Index is normally rebalanced and reconstituted
quarterly in March, June, September, and December.
As of December 1, 2024, the Index consisted of 189 securities with a market capitalization range of between approximately $501 million and $1.1 trillion. The components of the
Index may change over time. The percentage of the portfolio exposed to any 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 country or geographic region at all times.
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 Goldman Sachs Asset Management, L.P. (“GSAM” or 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.
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.
The Fund is classified as “diversified” under the
Investment Company Act of 1940, as amended (the “Investment Company Act”). However,
the Fund may become “non-diversified” solely as a result of a change in
the relative market capitalization or index weighting of
one or more constituents of the Index. A non-diversified fund may invest a larger percentage
of its assets in fewer issuers than diversified funds.
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.
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 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.
Clean Energy Sector Risk. The Fund may concentrate its investments in the clean energy group of industries to the extent the Index is concentrated in such group of
industries, and will therefore be susceptible to adverse economic, business, social, political,
environmental, regulatory or other developments affecting that group of industries. Clean
energy companies may be more volatile than companies operating in more established industries. Certain valuation methods used to value clean energy companies have not been in widespread use for a significant period of
time and may further increase the volatility of certain clean energy company share prices. Clean energy companies and other companies operating in the clean energy group of industries are subject to
specific risks, including, among others: fluctuations in commodity prices and/or interest rates; changes in governmental or environmental regulation; reduced availability of clean energy sources or other
commodities for transporting, processing, storing or delivering; slowdowns in new construction; seasonal weather conditions, extreme weather or other natural disasters; and threats of attack by terrorists on certain
clean energy assets. Clean energy companies can be significantly affected by the supply of, and demand for, particular energy products, which may result in overproduction or underproduction. Additionally,
changes in the regulatory environment for clean energy companies may adversely impact their profitability. Obsolescence of existing technology, short product cycles, falling prices and profits, competition from
new market entrants and general economic conditions can significantly affect companies in the clean energy group of industries. Certain investments may be dependents on U.S. and foreign government policies,
including tax incentives and subsidies.
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
3 Summary Prospectus — Goldman Sachs Bloomberg Clean Energy Equity ETF
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.
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, 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.
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.
4 Summary Prospectus — Goldman Sachs Bloomberg Clean Energy Equity ETF
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.
Seed Investor Risk. GSAM and/or its affiliates may make payments to one or more investors that contribute seed capital to the Fund. Such payments may continue for a specified
period of time and/or until a specified dollar amount is reached. Those payments will be made from the assets of GSAM and/or such affiliates (and not the Fund). Seed investors may contribute all or a
majority of the assets in the Fund. There is a risk that such seed investors may redeem their investments in the Fund, particularly after payments from GSAM and/or its affiliates have ceased. As with redemptions by
other large shareholders, such redemptions could have a significant negative impact on the Fund, including on the Fund’s liquidity and the market price of the Fund’s Shares.
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.
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, 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.
| 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 (S&P 500 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 |
14.39% |
September 30, 2024 |
| During the periods shown in the chart above:
|
Returns |
Quarter ended |
| Best Quarter Return |
7.22% |
December 31, 2023 |
| Worst Quarter Return |
-14.51% |
September 30, 2023 |
| AVERAGE ANNUAL TOTAL RETURN For the period ended
December 31, 2023 |
|
|
|
| 1 Year |
Since
Inception |
Inception
Date | |
| Goldman Sachs Bloomberg Clean Energy Equity ETF |
|
|
2/8/2022 |
| Returns Before Taxes |
-5.15% |
-6.13% |
|
| Returns After Taxes on Distributions |
-5.38% |
-8.92% |
|
| Returns After Taxes on Distributions and Sale of Fund Shares |
-2.65% |
-6.44% |
|
| Bloomberg Goldman Sachs Global Clean Energy Index (Total Return, Unhedged, USD) |
-4.48% |
-5.23% |
|
| S&P 500® Index |
26.29% |
4.60% |
|
Benchmark returns do not reflect any deductions for fees or expenses.
5 Summary Prospectus — Goldman Sachs Bloomberg Clean Energy Equity ETF
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 February 2022.
| 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 Bloomberg Clean Energy Equity ETF
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