Goldman Sachs Funds
Annual Report |
August 31, 2023 | |||
Goldman Sachs Future Thematic Equity ETFs | ||||
Goldman Sachs Future Consumer Equity ETF (GBUY) | ||||
Goldman Sachs Future Health Care Equity ETF (GDOC) | ||||
Goldman Sachs Future Planet Equity ETF (GSFP) | ||||
Goldman Sachs Future Real Estate and Infrastructure Equity ETF (GREI) | ||||
Goldman Sachs Future Tech Leaders Equity ETF (GTEK) |
Goldman Sachs Future Thematic Equity ETFs
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GOLDMAN SACHS FUTURE CONSUMER EQUITY ETF |
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GOLDMAN SACHS FUTURE HEALTH CARE EQUITY ETF |
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GOLDMAN SACHS FUTURE PLANET EQUITY ETF |
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GOLDMAN SACHS FUTURE REAL ESTATE AND INFRASTRUCTURE EQUITY ETF |
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GOLDMAN SACHS FUTURE TECH LEADERS EQUITY ETF |
1 | ||||
4 | ||||
27 | ||||
34 | ||||
41 | ||||
41 | ||||
42 | ||||
43 | ||||
Goldman Sachs Future Real Estate and Infrastructure Equity ETF |
44 | |||
45 | ||||
46 | ||||
59 | ||||
60 |
NOT FDIC-INSURED | May Lose Value | No Bank Guarantee |
Goldman Sachs Future Thematic Equity ETFs
Principal Investment Strategies
The Goldman Sachs Future Consumer Equity ETF, the Goldman Sachs Future Health Care Equity ETF, the Goldman Sachs Future Planet Equity ETF and the Goldman Sachs Future Real Estate and Infrastructure Equity ETF (each, a “Fund” and together the “Funds”) seek to achieve their respective investment objectives by investing, under normal circumstances, at least 80% of their net assets plus any borrowings for investment purposes (measured at the time of purchase) in equity investments in U.S. and non-U.S. companies that Goldman Sachs Asset Management, L.P. (the “Investment Adviser”) believes are aligned, at the time the investment is first added to a Fund’s portfolio, with certain key themes (the “Key Themes”). The Goldman Sachs Future Tech Leaders Equity ETF does not use Key Themes within its investment process, but instead seeks to achieve its investment objective by investing in companies that the Investment Adviser believes are driving technological innovation or benefiting from the enablement of technology and have the potential to grow their business over many years.
The Key Themes and related areas of investment may change over time at the sole discretion of the Investment Adviser without prior notice to shareholders. In addition, each Fund is permitted to make investments that are not aligned with the Key Themes. In selecting investments, the Investment Adviser will not seek to allocate a specified portion of the Fund’s portfolio to each particular Key Theme, and the allocation of the Fund’s investments across the Key Themes will vary over time in the Investment Adviser’s sole discretion. Each Fund may not allocate its investments to each Key Theme at all times and an investment may be aligned with multiple Key Themes at the same time.
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.
Goldman Sachs Future Consumer Equity ETF
The Goldman Sachs Future Consumer Equity ETF (the “Fund”) intends to invest in companies that the Investment Adviser believes are aligned with the Key Themes associated with the different and evolving priorities and spending habits of younger consumers, which include, but are not limited to:
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Tech-Enabled Consumption |
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Digital Enabler — Companies that provide or help create products, services or technologies in areas including but not limited to Internet and communications infrastructure, digital components and fintech infrastructure. |
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Digital Services — Companies that provide or help create products, services or technologies in areas including but not limited to e-commerce, social media, digital entertainment and gaming, fintech services, mobility and the digital workforce. |
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Lifestyle and Values |
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Consumption — Companies that provide or help create products, services or technologies in areas including but not limited to health and wellness, luxury and sustainable living. |
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Lifestyle — Companies that provide or help create products, services or technologies in areas including but not limited to experiences, health and wellness, sustainable living, education, pet care and childcare. |
Goldman Sachs Future Health Care Equity ETF
The Goldman Sachs Future Health Care Equity ETF (the “Fund”) intends to invest in companies that the Investment Adviser believes are aligned with the Key Themes associated with innovation in health care, which include, but are not limited to:
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Genomics — Companies that provide, invest in or help create products, services or technologies in areas including but not limited to sequencing, diagnostic testing and the genomics supply chain. |
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Precision Medicine — Companies that provide, invest in or help create products, services or technologies in areas including but not limited to targeted oncology, gene/cell therapy and rare diseases. |
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Technology-Enabled Procedures — Companies that provide, invest in or help create products, services or technologies in areas including but not limited to robotic surgery and minimally invasive procedures. |
1
INVESTMENT PROCESS
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Digital Healthcare — Companies that provide, invest in or help create products, services or technologies in areas including but not limited to connected devices, digital transformation and online health. |
Goldman Sachs Future Planet Equity ETF
The Goldman Sachs Future Planet Equity ETF (the “Fund”) intends to invest in companies that the Investment Adviser are aligned with the Key Themes associated with seeking to address environmental problems, which include, but are not limited to:
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Clean Energy — Companies that provide, invest in or help create products, services or technologies in areas including but not limited to solar energy, wind energy, bioenergy, energy storage, grid services and carbon sequestration. |
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Resource Efficiency — Companies that provide, invest in or help create products, services or technologies in areas including but not limited to electric and autonomous vehicles, sustainable manufacturing, logistics and smart cities. |
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Sustainable Consumption — Companies that provide, invest in or help create products, services or technologies in areas including but not limited to agriculture, food, tourism and fashion. |
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Circular Economy — Companies that provide, invest in or help create products, services or technologies in areas including but not limited to recycling and reuse, waste management and single-use substitution. |
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Water Sustainability — Companies that provide, invest in or help create products, services or technologies in areas including but not limited to water treatment, water distribution and desalination. |
Goldman Sachs Future Real Estate and Infrastructure Equity ETF
The Goldman Sachs Future Real Estate and Infrastructure Equity ETF (the “Fund”) intends to invest in companies that the Investment Adviser are aligned with the Key Themes associated with secular growth drivers for real estate and infrastructure assets, which include, but are not limited to:
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Technological Innovation — Real estate and infrastructure companies that facilitate technological innovation-driven demand including but not limited to towers and digital storage. |
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Environmental Sustainability — Real estate and infrastructure companies that facilitate environmental sustainability-driven demand drivers in areas including but not limited to utilities enabling energy transition, alternative energy producers, water utilities, energy storage and grid services. |
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New Age Consumer — Real estate and infrastructure companies that facilitate different and evolving priorities and spending habits of younger consumers, including but not limited to logistics, cold storage, transportation infrastructure, self storage, rental housing, leisure hotels and studio office. |
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Future of Health Care — Real estate and infrastructure companies that facilitate health care innovation and aging demographic trends including but not limited to lab office, life science office and senior housing. |
Goldman Sachs Future Tech Leaders Equity ETF
The Goldman Sachs Future Tech Leaders Equity ETF (the “Fund”) intends to invest in companies that the Investment Adviser believes are driving technological innovation or benefiting from the enablement of technology and have the potential to grow their business over many years.
The Investment Adviser seeks to:
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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. |
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Invest 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. |
* * *
2
INVESTMENT PROCESS
At the end of the Reporting Period, i.e., the 12-month period ended August 31, 2023, we noted that during the 2022 calendar year, innovation equities — which we define as companies on the right side of long-term secular growth themes — had experienced some of the sharpest declines in the broad equity market. This was, in our view, due to their greater sensitivity to interest rate movements and their starting point of elevated valuations. However, during the 2023 calendar year to date, innovation equities had generally rebounded, driven by key tailwinds, such as the rise of generative artificial intelligence and softening recessionary concerns. We believed at the end of the Reporting Period that going forward, innovation equities were likely to offer higher margins and faster earnings growth than the equity market broadly, and we thought the equities in which the Funds invest could offer even faster earnings growth than market consensus estimates. In our view, innovation equities may also be well-positioned in an inflationary environment given that companies with innovative products typically exert greater pricing power and that inflation encourages businesses to invest in innovative solutions to reduce costs and improve efficiency. Additionally, global events may further accelerate key secular themes, providing additional tailwinds to certain innovation equities, in our opinion.
In our view, active management is especially critical in this environment, as the market was, at the end of the Reporting Period, differentiating between profitable and unprofitable as well as between high-growth, high-margin and high-growth, low-margin stocks. In managing the Funds, we intended to continue following our disciplined process of stock-level due diligence, portfolio construction and risk management. We planned to remain highly focused on understanding the fundamental drivers of the companies in which we consider investing and expected to invest in them only if we have conviction that their business models can be successful over the long term. Additionally, we intended to maintain balanced and diversified allocations across Key Themes, market capitalizations, regions and sectors to avoid concentrated risk exposures.
3
Goldman Sachs Future Consumer Equity ETF
Investment Objective
The Goldman Sachs Future Consumer Equity ETF (the “Fund”) seeks long-term growth of capital.
Portfolio Management Discussion and Analysis
Below, the Goldman Sachs Fundamental Equity Team discusses the Fund’s performance and positioning for the 12-month period ended August 31, 2023 (the “Reporting Period”).
Q | How did the Fund perform during the Reporting Period? |
A | During the Reporting Period, the Fund returned 6.84% based on net asset value (“NAV”) and 7.51% based on market price. The Fund’s benchmark, the MSCI All Country World Index Growth Index (the “MSCI ACWI Growth Index”), returned 17.86% during the same period. |
The Fund had an NAV of $25.43 per share on August 31, 2022 and ended the Reporting Period with an NAV of $27.17 per share. The Fund’s market price on August 31, 2023 was $27.20 per share. |
Q | What key factors were responsible for the Fund’s performance during the Reporting Period? |
A | The Fund is an actively managed exchange-traded fund (“ETF”) that seeks long-term growth of capital by investing in companies that may be aligned, at the time a given investment is first added to the Fund’s portfolio, with the key themes associated with the different and evolving priorities and spending habits of younger consumers, which include, but are not limited to, Tech-Enabled Consumption and Lifestyle and Values (the “Key Themes”). Additionally, as part of its investment process, the Goldman Sachs Fundamental Equity Team divides these Key Themes into multiple sub-themes. |
During the Reporting Period, the Fund produced a positive absolute return, as the broad global equity market advanced. At the start of 2023, investors pivoted away from energy stocks and into other segments of the global equity market; energy had been the only sector in the MSCI ACWI Growth Index to generate gains during calendar year 2022. Growth-oriented stocks, in which the Fund holds a considerable position, also performed well during the Reporting Period overall, bolstering the Fund’s absolute performance. |
On a relative basis, the Fund underperformed the MSCI ACWI Growth Index during the Reporting Period. The Lifestyle and Values Key Theme detracted from the Fund’s relative performance, though this was offset somewhat by the Tech-Enabled Consumption Key Theme, which contributed positively. Among sub-themes, sustainable consumption detracted most, while digital components and luxury each added to returns. In addition, the Fund was hampered by its limited exposure to certain mega-cap stocks and to stocks that were, in our opinion, already overvalued. Recession worries, driven by high inflation, also dampened the performance of some of the Fund’s holdings among consumer discretionary stocks. |
Within sectors, the Fund was hurt by stock selection in the communication services and utilities sectors. On the positive side, the Fund benefited from stock selection in the information technology and consumer staples sectors. |
From a country perspective, stock selection in the U.S., Netherlands and China detracted from relative performance. Stock selection in Italy and France added to the Fund’s returns during the Reporting Period. |
Q | Which individual stock positions detracted most from the Fund’s relative returns during the Reporting Period? |
A | Relative to the MSCI ACWI Growth Index, the Fund’s overweight positions in American Tower, a real estate investment trust that owns and operates wireless communications and broadcast towers in the U.S.; NextEra Energy, a U.S. electric utility and renewable energy company; and EDP Renovaveis, a Spanish renewable energy company (3.01%, 3.27% and 2.17% of Fund net assets as of August 31, 2023, respectively) detracted most from relative performance. All three stocks generated double-digit negative returns within the MSCI ACWI Growth Index during the Reporting Period. |
4
PORTFOLIO RESULTS
Q | Which individual stock positions contributed most positively to the Fund’s relative returns during the Reporting Period? |
A | Compared to the MSCI ACWI Growth Index, the Fund was helped most by overweight positions in NVIDIA, a U.S. designer and manufacturer of graphics processors, chipsets and related multimedia software; Meta Platforms, U.S. technology company; and Moncler, an Italian apparel manufacturer (6.10%, 5.10% and 2.48% of Fund net assets as of August 31, 2023, respectively). NVIDIA delivered a triple-digit positive return within the MSCI ACWI Growth Index, while Meta Platforms and Moncler each produced a double-digit positive return within the MSCI ACWI Growth Index during the Reporting Period. |
Q | How did the Fund use derivatives and similar instruments during the Reporting Period? |
A | During the Reporting Period, the Fund did not invest in derivatives or similar instruments. The Fund does not employ derivatives as a source of alpha generation, although it may use them to equitize excess cash. |
Q | Were there any changes to the Fund’s portfolio management team during the Reporting Period? |
A | Effective January 3, 2023, Laura Destribats no longer served as a portfolio manager for the Fund. As of February 2, 2023, Jennifer Sullivan became a portfolio manager for the Fund, joining Alexis Deladerrière, Raj Garigipati and Nathan Lin. Mr. Deladerrière, Mr. Garigipati and Mr. Lin have been portfolio managers for the Fund since 2021. By design, the Fund is managed within a team structure. This has been a cornerstone of our approach and helps ensure continuity in the Fund. |
Q | What was the Fund’s sector positioning relative to the MSCI ACWI Growth Index at the end of the Reporting Period?1 |
Sector Name | Fund | MSCI ACWI Growth Index |
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Communication Services | 30.40 | % | 10.95 | % | ||||||
Consumer Discretionary | 26.54 | 14.80 | ||||||||
Information Technology | 14.23 | 33.36 | ||||||||
Financials | 5.89 | 8.52 | ||||||||
Consumer Staples | 5.52 | 5.97 | ||||||||
Utilities | 5.44 | 0.34 | ||||||||
Materials | 4.48 | 2.75 | ||||||||
Real Estate | 3.01 | 0.88 | ||||||||
Industrials | 2.53 | 9.90 | ||||||||
Health Care | 1.32 | 10.78 | ||||||||
Energy | 0.00 | 1.75 | ||||||||
Cash | 0.62 | 0.00 |
Q | What was the Fund’s country positioning relative to the MSCI ACWI Growth Index at the end of the Reporting Period?1 |
Country Name | Fund | MSCI ACWI Growth Index |
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U.S. | 61.45 | % | 64.08 | % | ||||||
China | 8.79 | 3.18 | ||||||||
Italy | 5.60 | 0.31 | ||||||||
Taiwan | 5.08 | 1.58 | ||||||||
Netherlands | 3.56 | 1.49 | ||||||||
France | 3.22 | 3.32 | ||||||||
U.K. | 2.82 | 2.26 | ||||||||
Hong Kong | 2.62 | 0.58 | ||||||||
Portugal | 2.17 | 0.04 | ||||||||
Germany | 1.88 | 1.67 | ||||||||
South Korea | 1.01 | 1.15 | ||||||||
Brazil | 0.68 | 0.53 | ||||||||
Singapore | 0.48 | 0.30 |
1 | Country and sector classifications for securities may differ between the above listing and the Schedule of Investments due to differing classification methodologies. The classification methodology used for the above listing is as set forth by MSCI. The Fund’s composition may differ over time. Consequently, the Fund’s overall country and sector allocations may differ from percentages contained in the chart above. The percentage shown for each investment category reflects the value of investments in that category as a percentage of market value. Figures above may not sum to 100% due to rounding due to the presence of cash. |
5
FUND BASICS
Goldman Sachs Future Consumer Equity ETF
as of August 31, 2023
FUND SNAPSHOT |
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As of August 31, 2023 | ||||||
Market Price1 | $ | 27.20 | ||||
Net Asset Value (NAV)1 | $ | 27.17 |
1 | The Market Price is the price at which the Fund’s shares are trading on the NYSE Arca, Inc. The Market Price of the Fund’s shares will fluctuate and, at the time of sale, shares may be worth more or less than the original investment or the Fund’s then current net asset value (“NAV”). The NAV is the market value of one share of the Fund. This amount is derived by dividing the total value of all the securities in the Fund’s portfolio, plus other assets, less any liabilities, by the number of Fund shares outstanding. Fund shares are not individually redeemable and are issued and redeemed by the Fund at their NAV only in large, specified blocks of shares called creation units. Shares otherwise can be bought and sold only through exchange trading at market price (not NAV). Shares may trade at a premium or discount to their NAV in the secondary market. Information regarding how often shares of the Fund traded on NYSE Arca at a price above (i.e., at a premium) or below (i.e., at a discount) the NAV of the Fund can be found at www.GSAMFUNDS.com/ETFs. |
TOP TEN HOLDINGS AS OF 8/31/232 | ||||||||||
Holding | % of Net Assets | Line of Business | Country | |||||||
Amazon.com, Inc. | 7.7 | % | Consumer Discretionary | United States | ||||||
Alphabet, Inc., Class C | 7.1 | Communication Services | United States | |||||||
NVIDIA Corp. | 6.1 | Information Technology | United States | |||||||
Meta Platforms, Inc., Class A | 5.1 | Communication Services | United States | |||||||
Mastercard, Inc., Class A | 5.1 | Financials | United States | |||||||
Taiwan Semiconductor Manufacturing Co. Ltd. | 4.3 | Information Technology | Taiwan | |||||||
NextEra Energy, Inc. | 3.3 | Utilities | United States | |||||||
LVMH Moet Hennessy Louis Vuitton SE | 3.2 | Consumer Discretionary | France | |||||||
Davide Campari-Milano NV | 3.1 | Consumer Staples | Italy | |||||||
American Tower Corp. REIT | 3.0 | Real Estate | United States |
2 | The top 10 holdings may not be representative of the Fund’s future investments. |
For more information about the Fund, please refer to www.GSAMFUNDS.com/ETFs. There, you can learn more about the Fund’s investment strategies, holdings, and performance.
6
GOLDMAN SACHS FUTURE CONSUMER EQUITY ETF
Performance Summary
August 31, 2023
The following graph shows the value, as of August 31, 2023, of a $10,000 investment made on November 9, 2021 (commencement of operations) in Shares at NAV. For comparative purposes, the performance of the Fund’s benchmark, the MSCI ACWI Growth Index, is shown. Performance reflects applicable fee waivers and/or expense limitations in effect during the periods shown and in their absence, performance would be reduced. Returns do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the sale of Fund shares. Certain factors may affect Fund performance including, but not limited to, Fund operating fees and expenses, portfolio turnover and creation and redemption in-kind transactions. The returns set forth below represent past performance. Past performance does not guarantee future results. The Fund’s NAV and investment return may fluctuate. These fluctuations may cause an investor’s shares to be worth more or less than their original cost. Current performance may be lower or higher than the performance quoted below. Please visit our web site at www.GSAMFUNDS.com/ETFs to obtain the most recent month-end returns.
Goldman Sachs Future Consumer Equity ETF’s Lifetime Performance |
Performance of a $10,000 Investment, with distributions reinvested, from November 9, 2021 through August 31, 2023.
Average Annual Total Return through August 31, 2023* | 1 Year Return | Since Inception | ||||
Shares based on NAV (Commenced November 9, 2021) |
6.84% | -19.15% | ||||
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Shares based on Market Price (Commenced November 9, 2021) |
7.51% | -19.10% | ||||
| ||||||
MSCI ACWI Growth Index |
17.86% | -6.69% | ||||
|
* | Total returns are calculated assuming purchase of a share at the market price or NAV on the first day and sale of a share at the market price or NAV on the last day of each period reported. The Total Returns based on NAV and Market Price assume the reinvestment of dividends and do not reflect brokerage commissions in connection with the purchase or sale of Fund shares, which if included would lower the performance shown above. The NAV used in the Total Return calculation assumes all management fees incurred by the Fund. Market Price returns are based upon the last trade at 4:00 pm EST and do not reflect the returns you would receive if you traded shares at other times. The first day of secondary market trading is typically several days after the date on which the Fund commenced investment operations; therefore, the NAV of the Fund is used as a proxy for the period from inception of investment operations to the first day of secondary market trading to calculate the Market Price returns. |
7
PORTFOLIO RESULTS
Goldman Sachs Future Health Care Equity ETF
Investment Objective
The Goldman Sachs Future Health Care Equity ETF (the “Fund”) seeks long-term growth of capital.
Portfolio Management Discussion and Analysis
Below, the Goldman Sachs Fundamental Equity Team discusses the Fund’s performance and positioning for the 12-month period ended August 31, 2023 (the “Reporting Period”).
Q | How did the Fund perform during the Reporting Period? |
A | During the Reporting Period, the Fund returned 8.28% based on net asset value (“NAV”) and 8.06% based on market price. The Fund’s benchmark, the MSCI All Country World Index Health Care Index (the “MSCI ACWI Health Care Index”), returned 9.41% during the same period. |
The Fund had an NAV of $29.94 per share on August 31, 2022 and ended the Reporting Period with an NAV of $32.42 per share. The Fund’s market price on August 31, 2023 was $32.42 per share. |
Q | What key factors were responsible for the Fund’s performance during the Reporting Period? |
A | The Fund is an actively managed exchange-traded fund (“ETF”) that seeks long-term growth of capital by investing in companies that may be aligned, at the time a given investment is first added to the Fund’s portfolio, with the key themes associated with innovation in health care, which include, but are not limited to, Genomics, Precision Medicine, Technology-Enabled Procedures and Digital Healthcare (the “Key Themes”). Additionally, as part of its investment process, the Goldman Sachs Fundamental Equity Team divides these Key Themes into multiple sub-themes. |
During the Reporting Period, the Fund generated a positive absolute return, as ongoing innovation across the health care ecosystem, coupled with demand normalization and a favorable mergers and acquisitions backdrop, fueled gains. In addition, sectors that had lagged during 2022, including health care, generally rebounded in 2023, adding further to the Fund’s absolute performance. |
Relative to the MSCI ACWI Health Care Index, the Fund underperformed during the Reporting Period. These results can be largely attributed to persistent inflation, elevated interest rates, recession concerns and elongated supply-chain disruptions. Given that the Fund is primarily invested in what we consider the most innovative parts of the health care ecosystem, it is acutely sensitive to rising interest rates and inflation. When inflation is heightened, investors tend to apply a steeper discount to future earnings, which can hurt the growth outlook for innovative companies. In addition, the MSCI ACWI Health Care Index’s market capitalization weighting skews towards the more defensive parts of the health care ecosystem, which remained resilient relative to innovation equities during the Reporting Period. |
Two of the Fund’s four Key Themes detracted from relative returns during the Reporting Period. The largest detractor was Genomics, which was hurt by a slowdown in COVID-19-related business segments and revenues amid waning demand for COVID-19 vaccines and diagnostic supplies. On the positive side, the Fund was helped by its two other Key Themes. Precision Medicine added most to relative performance, driven primarily by the development of novel drugs and treatments for chronic diseases, such as diabetes and Alzheimer’s disease. Within sub-themes, genomics supply chain detracted most from relative performance. The chronic diseases sub-theme contributed most positively to results. |
From an industry perspective, the Fund was hampered by stock selection and an overweight position versus the MSCI ACWI Health Care Index in biotechnology. Biotechnology, which is generally considered the growth engine of the health care ecosystem, was weak amid elevated interest rates. On the positive side, the Fund was aided by its lack of exposure to health care providers and services as well as by stock selection among leading pharmaceutical companies. |
From a country perspective, stock selection and an underweight position relative to the MSCI ACWI Health Care Index in Denmark detracted from the Fund’s relative returns. The Fund benefited from stock selection in and an overweight allocation to the U.S., as well as from an underweight position in China, during the Reporting Period. |
8
PORTFOLIO RESULTS
Q | Which individual stock positions detracted most from the Fund’s relative returns during the Reporting Period? |
A | Relative to the MSCI ACWI Health Care Index, the Fund was hurt by its lack of exposure to Novo Nordisk, a Danish pharmaceutical company, as well as by overweight positions in Insulet, a U.S. medical device company that specializes in insulin-delivery systems, and 2seventy Bio, a U.S. immuno-oncology cell therapy company (0.00%,1 2.33% and 0.41% of Fund net assets as of August 31, 2023, respectively). During the Reporting Period, Novo Nordisk posted a double-digit positive return within the MSCI ACWI Health Care Index. Insulet and 2seventy Bio each generated a double-digit negative return within the MSCI ACWI Health Care Index during the Reporting Period. |
Q | Which individual stock positions contributed most positively to the Fund’s relative returns during the Reporting Period? |
A | Relative to the MSCI ACWI Health Care Index, the Fund benefited most from an overweight position in Intuitive Surgical, a U.S. company that develops, manufactures and markets robotic products for minimally invasive surgery, as well as from its lack of exposure to United Health Group. a U.S. managed health care and insurance company, and Pfizer, a U.S. pharmaceutical and biotechnology company (5.05%, 0.00%1 and 0.00%1 of Fund net assets as of August 31, 2023, respectively). During the Reporting Period, Intuitive Surgical delivered a double-digit positive return within the MSCI ACWI Health Care Index. United Health Group recorded a single-digit negative return, and Pfizer produced a double-digit negative return within the MSCI ACWI Health Care Index during the Reporting Period. |
Q | How did the Fund use derivatives and similar instruments during the Reporting Period? |
A | During the Reporting Period, the Fund did not invest in derivatives or similar instruments. The Fund does not employ derivatives as a source of alpha generation, although it may use them to equitize excess cash. |
Q | Were there any changes to the Fund’s portfolio management team during the Reporting Period? |
A | Effective January 18, 2023, Anant Padmanabhan no longer served as a portfolio manager for the Fund. Jenny Chang and Raj Garigipati continued to serve as portfolio managers for the Fund. Ms. Chang and Mr. Garigipati have been portfolio managers for the Fund since 2021. By design, the Fund is managed within a team structure. This has been a cornerstone of our approach and helps ensure continuity in the Fund. |
Q | What was the Fund’s industry positioning relative to the MSCI ACWI Health Care Index at the end of the Reporting Period?2 |
Industry Name | Fund | MSCI ACWI Health Care Index |
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Health Care Equipment and Supplies | 29.34 | % | 17.71 | % | ||||||
Biotechnology | 28.37 | 14.44 | ||||||||
Pharmaceuticals | 22.28 | 41.58 | ||||||||
Life Sciences Tools and Services | 12.32 | 10.33 | ||||||||
Health Care Technology | 2.31 | 0.52 | ||||||||
Electronic Equipment Instruments and Components | 2.03 | 0.00 | ||||||||
Office Real Estate Investment Trusts | 1.66 | 0.00 | ||||||||
Health Care Providers & Services | 0.00 | 15.42 | ||||||||
Cash | 1.69 | 0.00 |
1 | Some weights are 0.00% at August 31, 2023 either because those positions were eliminated during the most recent rebalance given the Index construction methodology or were not held at all during the Reporting Period as they did not meet the Fund’s investment criteria. |
9
PORTFOLIO RESULTS
Q | What was the Fund’s country positioning relative to the MSCI ACWI Health Care Index at the end of the Reporting Period?2 |
Country Name | Fund | MSCI ACWI Health Care Index |
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U.S. | 81.8 | % | 69.17 | % | ||||||
Japan | 6.01 | 4.10 | ||||||||
U.K. | 5.29 | 3.97 | ||||||||
Australia | 2.86 | 1.50 | ||||||||
Denmark | 1.76 | 4.66 | ||||||||
Belgium | 1.00 | 0.53 | ||||||||
Switzerland | 0.80 | 7.22 | ||||||||
France | 0.61 | 2.69 | ||||||||
Brazil | 0.00 | 0.15 | ||||||||
China | 0.00 | 1.47 | ||||||||
Finland | 0.00 | 0.06 | ||||||||
Germany | 0.00 | 1.87 | ||||||||
Hungary | 0.00 | 0.05 | ||||||||
India | 0.00 | 0.70 | ||||||||
Indonesia | 0.00 | 0.03 | ||||||||
Israel | 0.00 | 0.14 | ||||||||
Italy | 0.00 | 0.16 | ||||||||
Malaysia | 0.00 | 0.05 | ||||||||
Netherlands | 0.00 | 0.28 | ||||||||
New Zealand | 0.00 | 0.15 | ||||||||
Saudi Arabia | 0.00 | 0.13 | ||||||||
South Korea | 0.00 | 0.51 | ||||||||
South Africa | 0.00 | 0.05 | ||||||||
Spain | 0.00 | 0.05 | ||||||||
Sweden | 0.00 | 0.10 | ||||||||
Taiwan | 0.00 | 0.04 | ||||||||
Thailand | 0.00 | 0.18 |
2 | Country and industry classifications for securities may differ between the above listing and the Schedule of Investments due to differing classification methodologies. The classification methodology used for the above listing is as set forth by MSCI. The Fund’s composition may differ over time. Consequently, the Fund’s overall country and industry allocations may differ from percentages contained in the chart above. The percentage shown for each investment category reflects the value of investments in that category as a percentage of market value. Figures above may not sum to 100% due to rounding due to the presence of cash. |
10
FUND BASICS
Goldman Sachs Future Health Care Equity ETF
as of August 31, 2023
FUND SNAPSHOT |
| |||||
As of August 31, 2023 | ||||||
Market Price1 | $ | 32.42 | ||||
Net Asset Value (NAV)1 | $ | 32.42 |
1 | The Market Price is the price at which the Fund’s shares are trading on the NYSE Arca, Inc. The Market Price of the Fund’s shares will fluctuate and, at the time of sale, shares may be worth more or less than the original investment or the Fund’s then current net asset value (“NAV”). The NAV is the market value of one share of the Fund. This amount is derived by dividing the total value of all the securities in the Fund’s portfolio, plus other assets, less any liabilities, by the number of Fund shares outstanding. Fund shares are not individually redeemable and are issued and redeemed by the Fund at their NAV only in large, specified blocks of shares called creation units. Shares otherwise can be bought and sold only through exchange trading at market price (not NAV). Shares may trade at a premium or discount to their NAV in the secondary market. Information regarding how often shares of the Fund traded on NYSE Arca at a price above (i.e., at a premium) or below (i.e., at a discount) the NAV of the Fund can be found at www.GSAMFUNDS.com/ETFs. |
TOP TEN HOLDINGS AS OF 8/31/232 | ||||||||||
Holding | % of Net Assets | Line of Business | Country | |||||||
Eli Lilly & Co. | 7.9 | % | Health Care | United States | ||||||
Boston Scientific Corp. | 5.5 | Health Care | United States | |||||||
Intuitive Surgical, Inc. | 5.1 | Health Care | United States | |||||||
AstraZeneca PLC | 5.0 | Health Care | United Kingdom | |||||||
Biogen, Inc. | 3.5 | Health Care | United States | |||||||
Chugai Pharmaceutical Co. Ltd. | 3.2 | Health Care | Japan | |||||||
Seagen, Inc. | 3.0 | Health Care | United States | |||||||
Dexcom, Inc. | 3.0 | Health Care | United States | |||||||
Gilead Sciences, Inc. | 2.9 | Health Care | United States | |||||||
BioMarin Pharmaceutical, Inc. | 2.9 | Health Care | United States |
2 | The top 10 holdings may not be representative of the Fund’s future investments. |
For more information about the Fund, please refer to www.GSAMFUNDS.com/ETFs. There, you can learn more about the Fund’s investment strategies, holdings, and performance.
11
GOLDMAN SACHS FUTURE HEALTH CARE EQUITY ETF
Performance Summary
August 31, 2023
The following graph shows the value, as of August 31, 2023, of a $10,000 investment made on November 9, 2021 (commencement of operations) in Shares at NAV. For comparative purposes, the performance of the Fund’s benchmark, the MSCI ACWI Health Care Index, is shown. Performance reflects applicable fee waivers and/or expense limitations in effect during the periods shown and in their absence, performance would be reduced. Returns do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the sale of Fund shares. Certain factors may affect Fund performance including, but not limited to, Fund operating fees and expenses, portfolio turnover and creation and redemption in-kind transactions. The returns set forth below represent past performance. Past performance does not guarantee future results. The Fund’s NAV and investment return may fluctuate. These fluctuations may cause an investor’s shares to be worth more or less than their original cost. Current performance may be lower or higher than the performance quoted below. Please visit our web site at www.GSAMFUNDS.com/ETFs to obtain the most recent month-end returns.
Goldman Sachs Future Health Care Equity ETF’s Lifetime Performance |
Performance of a $10,000 Investment, with distributions reinvested, from November 9, 2021 through August 31, 2023.
Average Annual Total Return through August 31, 2023* | 1 Year Return | Since Inception | ||||
Shares based on NAV (Commenced November 9, 2021) |
8.28% | -10.57% | ||||
| ||||||
Shares based on Market Price (Commenced November 9, 2021) |
8.06% | -10.57% | ||||
| ||||||
MSCI ACWI Health Care Index |
9.41% | -1.42% | ||||
|
* | Total returns are calculated assuming purchase of a share at the market price or NAV on the first day and sale of a share at the market price or NAV on the last day of each period reported. The Total Returns based on NAV and Market Price assume the reinvestment of dividends and do not reflect brokerage commissions in connection with the purchase or sale of Fund shares, which if included would lower the performance shown above. The NAV used in the Total Return calculation assumes all management fees incurred by the Fund. Market Price returns are based upon the last trade at 4:00 pm EST and do not reflect the returns you would receive if you traded shares at other times. The first day of secondary market trading is typically several days after the date on which the Fund commenced investment operations; therefore, the NAV of the Fund is used as a proxy for the period from inception of investment operations to the first day of secondary market trading to calculate the Market Price returns. |
12
PORTFOLIO RESULTS
Goldman Sachs Future Planet Equity ETF
Investment Objective
The Goldman Sachs Future Planet Equity ETF (the “Fund”) seeks long-term capital appreciation.
Portfolio Management Discussion and Analysis
Below, the Goldman Sachs Fundamental Equity Team discusses the Fund’s performance and positioning for the 12-month period ended August 31, 2023 (the “Reporting Period”).
Q | How did the Fund perform during the Reporting Period? |
A | During the Reporting Period, the Fund returned 0.13% based on net asset value (“NAV”) and 0.26% based on market price. The Fund’s benchmark, the MSCI All Country World Index (Net, USD, Unhedged) (the “MSCI ACWI Index”), returned 13.95% during the same period. |
The Fund had an NAV of $30.23 per share on August 31, 2022 and ended the Reporting Period with an NAV of $30.15 per share. The Fund’s market price on August 31, 2023 was $30.11 per share. |
Q | What key factors were responsible for the Fund’s performance during the Reporting Period? |
A | The Fund is an actively managed exchange-traded fund (“ETF”) that seeks long-term capital appreciation by investing in companies that may be associated, at the time a given investment is first added to the Fund’s portfolio, with seeking to address environmental problems, which include, but are not limited to, Clean Energy, Resource Efficiency, Sustainable Consumption, Circular Economy and Water Sustainability (the “Key Themes”). Additionally, as part of its investment process, the Goldman Sachs Fundamental Equity Team divides these Key Themes into multiple sub-themes. |
During the Reporting Period, the Fund generated a slightly positive absolute return, with gains limited by a broad-based sell-off among clean energy and clean technology stocks. The decline was driven by slowing growth and earnings per share due to tough supply and demand fundamentals, certain end markets experiencing a destocking cycle, rising interest rates and increased geopolitical risk factors that dampened sentiment about Asian supply chains. (Destocking refers to the process of reducing inventory or of stocking less.) |
On a relative basis, the Fund underperformed the MSCI ACWI Index during the Reporting Period overall. U.S. large-cap technology stocks drove more than 50% of MSCI ACWI Index returns between the beginning of 2023 and the end of the Reporting Period. However, the Fund had no exposure to that market segment because it is not aligned with any of the Fund’s Key Themes. |
Among Key Themes, Sustainable Consumption, Clean Energy and Circular Economy detracted from relative performance, while Resource Efficiency and Water Sustainability contributed positively during the Reporting Period. Food and agriculture was the leading detractor among sub-themes, and smart cities was the most successful sub-theme during the Reporting Period. |
Regarding sectors, stock selection in information technology, especially U.S. large-cap companies, had a negative impact on the Fund’s relative results. In addition, the Fund’s lack of exposure to real estate, which does not align with the Key Themes, also hampered its performance. Overweight positions versus the MSCI ACWI Index in materials, industrials and utilities, which were hurt more than other sectors by supply-chain disruptions, inflation and rising interest rates, detracted further from the Fund’s relative returns. |
From a country perspective, the Fund’s allocation to the U.S. hurt its relative performance most given the rally in the information technology sector during the Reporting Period. Also detracting was stock selection in the Netherlands, specifically an investment in a bioscience company that was struggling amid restocking challenges and the completion of a merger. On the positive side, the Fund benefited from stock selection in Italy and Switzerland. In Switzerland, stock selection driven by the grid services and smart cities sub-themes was particularly advantageous. |
13
PORTFOLIO RESULTS
Q | Which individual stock positions detracted most from the Fund’s relative returns during the Reporting Period? |
A | Relative to the MSCI ACWI Index, the Fund was hampered by its overweight positions in DSM Firmenich, a Swiss-Dutch health, nutrition and bioscience company; Wolfspeed, a U.S. developer and manufacturer of wide bandgap semiconductors; and NextEra Energy, a U.S. electric utility and renewable energy company (3.76%, 0.83% and 3.14% of Fund net assets as of August 31, 2023, respectively). All three stocks produced double-digit negative returns within the MSCI ACWI Index during the Reporting Period. |
Q | Which individual stock positions contributed most positively to the Fund’s relative returns during the Reporting Period? |
A | Relative to the MSCI ACWI Index, the Fund benefited most from overweight positions in Enel, an Italian company involved in electricity generation and distribution as well as natural gas distribution; Schneider Electric, a French company engaged in energy and automation digital solutions for efficiency and sustainability; and Infineon Technologies, a German semiconductor manufacturer (4.23%, 3.36% and 3.15% of Fund net assets as of August 31, 2023, respectively). Each of these stocks recorded a double-digit positive return within the MSCI ACWI Index during the Reporting Period. |
Q | How did the Fund use derivatives and similar instruments during the Reporting Period? |
A | During the Reporting Period, the Fund did not invest in derivatives or similar instruments. The Fund does not employ derivatives as a source of alpha generation, although it may use them to equitize excess cash. |
Q | Were there any changes to the Fund’s portfolio management team during the Reporting Period? |
A | Effective May 1, 2023, Saurabh Jain became a portfolio manager for the Fund, joining Alexis Deladerrière and Raj Garigipati. Mr. Deladerrière and Mr. Garigipati have been portfolio managers for the Fund since 2021. By design, the Fund is managed within a team structure. This has been a cornerstone of our approach and helps ensure continuity in the Fund. |
Q | What was the Fund’s sector positioning relative to the MSCI ACWI Index at the end of the Reporting Period?1 |
Sector Name | Fund | MSCI ACWI Index | ||||||||
Industrials | 34.82 | % | 10.45 | % | ||||||
Materials | 24.89 | 4.48 | ||||||||
Information Technology | 16.61 | 22.06 | ||||||||
Utilities | 12.50 | 2.63 | ||||||||
Health Care | 3.68 | 11.76 | ||||||||
Consumer Staples | 2.39 | 7.15 | ||||||||
Consumer Discretionary | 1.90 | 11.32 | ||||||||
Communication Services | 0.00 | 7.51 | ||||||||
Energy | 0.00 | 4.90 | ||||||||
Financials | 0.00 | 15.42 | ||||||||
Real Estate | 0.00 | 2.33 | ||||||||
Cash | 3.22 | 0.00 |
Q | What was the Fund’s country positioning relative to the MSCI ACWI Index at the end of the Reporting Period?1 |
Country Name | Fund | MSCI ACWI Index | ||||||||
U.S. | 41.96 | % | 62.21 | % | ||||||
Japan | 9.95 | 5.49 | ||||||||
Netherlands | 5.58 | 1.06 | ||||||||
Denmark | 4.48 | 0.78 | ||||||||
China | 4.48 | 3.10 | ||||||||
France | 4.33 | 2.97 | ||||||||
Italy | 4.23 | 0.63 | ||||||||
Switzerland | 4.13 | 2.45 | ||||||||
Spain | 3.99 | 0.63 | ||||||||
U.K. | 3.18 | 3.53 | ||||||||
Germany | 3.15 | 2.06 | ||||||||
Ireland | 2.67 | 0.50 | ||||||||
Taiwan | 2.05 | 1.56 | ||||||||
Belgium | 1.03 | 0.23 | ||||||||
Norway | 0.83 | 0.16 | ||||||||
Sweden | 0.70 | 0.75 | ||||||||
Australia | 0.05 | 1.82 |
1 | Country and sector classifications for securities may differ between the above listing and the Schedule of Investments due to differing classification methodologies. The classification methodology used for the above listing is as set forth by MSCI. The Fund’s composition may differ over time. Consequently, the Fund’s overall country and sector allocations may differ from percentages contained in the chart above. The percentage shown for each investment category reflects the value of investments in that category as a percentage of market value. Investments in the securities lending vehicle represented 0.80% of the Fund’s net assets as of August 31, 2023. Figures above may not sum to 100% due to rounding due to the presence of cash. |
14
FUND BASICS
Goldman Sachs Future Planet Equity ETF
as of August 31, 2023
FUND SNAPSHOT | ||||||
As of August 31, 2023 | ||||||
Market Price1 | $ | 30.11 | ||||
Net Asset Value (NAV)1 | $ | 30.15 |
1 | The Market Price is the price at which the Fund’s shares are trading on the NYSE Arca, Inc. The Market Price of the Fund’s shares will fluctuate and, at the time of sale, shares may be worth more or less than the original investment or the Fund’s then current net asset value (“NAV”). The NAV is the market value of one share of the Fund. This amount is derived by dividing the total value of all the securities in the Fund’s portfolio, plus other assets, less any liabilities, by the number of Fund shares outstanding. Fund shares are not individually redeemable and are issued and redeemed by the Fund at their NAV only in large, specified blocks of shares called creation units. Shares otherwise can be bought and sold only through exchange trading at market price (not NAV). Shares may trade at a premium or discount to their NAV in the secondary market. Information regarding how often shares of the Fund traded on NYSE Arca at a price above (i.e., at a premium) or below (i.e., at a discount) the NAV of the Fund can be found at www.GSAMFUNDS.com/ETFs. |
TOP TEN HOLDINGS AS OF 8/31/232 | ||||||||||
Holding | % of Net Assets | Line of Business | Country | |||||||
Enel SpA | 4.2 | % | Utilities | Italy | ||||||
Iberdrola SA | 4.0 | Utilities | Spain | |||||||
DSM-Firmenich AG | 3.8 | Materials | Switzerland | |||||||
Danaher Corp. | 3.7 | Health Care | United States | |||||||
Contemporary Amperex Technology Co. Ltd., Class A | 3.4 | Industrials | China | |||||||
Schneider Electric SE | 3.4 | Industrials | United States | |||||||
Waste Management, Inc. | 3.4 | Industrials | United States | |||||||
Ecolab, Inc. | 3.2 | Materials | United States | |||||||
DS Smith PLC | 3.2 | Materials | United Kingdom | |||||||
Infineon Technologies AG | 3.2 | Information Technology | Germany |
2 | The top 10 holdings may not be representative of the Fund’s future investments. |
For more information about the Fund, please refer to www.GSAMFUNDS.com/ETFs. There, you can learn more about the Fund’s investment strategies, holdings, and performance.
15
GOLDMAN SACH FUTURE PLANET EQUITY ETF
Performance Summary
August 31, 2023
The following graph shows the value, as of August 31, 2023, of a $10,000 investment made on July 13, 2021 (commencement of operations) in Shares at NAV. For comparative purposes, the performance of the Fund’s benchmark, the MSCI ACWI Index, is shown. Performance reflects applicable fee waivers and/or expense limitations in effect during the periods shown and in their absence, performance would be reduced. Returns do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the sale of Fund shares. Certain factors may affect Fund performance including, but not limited to, Fund operating fees and expenses, portfolio turnover and creation and redemption in-kind transactions. The returns set forth below represent past performance. Past performance does not guarantee future results. The Fund’s NAV and investment return may fluctuate. These fluctuations may cause an investor’s shares to be worth more or less than their original cost. Current performance may be lower or higher than the performance quoted below. Please visit our web site at www.GSAMFUNDS.com/ETFs to obtain the most recent month-end returns.
Goldman Sachs Future Planet Equity ETF’s Lifetime Performance |
Performance of a $10,000 Investment, with distributions reinvested, from July 13, 2021 through August 31, 2023.
Average Annual Total Return through August 31, 2023* | 1 Year Return | Since Inception | ||||
Shares based on NAV (Commenced July 13, 2021) |
0.13% | -11.92% | ||||
| ||||||
Shares based on Market Price (Commenced July 13, 2021) |
0.26% | -11.98% | ||||
| ||||||
MSCI ACWI Index |
13.95% | -1.99% | ||||
|
* | Total returns are calculated assuming purchase of a share at the market price or NAV on the first day and sale of a share at the market price or NAV on the last day of each period reported. The Total Returns based on NAV and Market Price assume the reinvestment of dividends and do not reflect brokerage commissions in connection with the purchase or sale of Fund shares, which if included would lower the performance shown above. The NAV used in the Total Return calculations assumes all management fees incurred by the Fund. Market Price returns are based upon the last trade at 4:00 pm EST and do not reflect the returns you would receive if you traded shares at other times. The first day of secondary market trading is typically several days after the date on which the Fund commenced investment operations; therefore, the NAV of the Fund is used as a proxy for the period from inception of investment operations to the first day of secondary market trading to calculate the Market Price returns. |
16
PORTFOLIO RESULTS
Goldman Sachs Future Real Estate and Infrastructure Equity ETF
Investment Objective
The Goldman Sachs Future Real Estate and Infrastructure Equity ETF (the “Fund”) seeks long-term growth of capital.
Portfolio Management Discussion and Analysis
Below, the Goldman Sachs Fundamental Equity Team discusses the Fund’s performance and positioning for the 12-month period ended August 31, 2023 (the “Reporting Period”).
Q | How did the Fund perform during the Reporting Period? |
A | During the Reporting Period, the Fund returned -3.77% based on net asset value (“NAV”) and -4.15% based on market price. The Fund’s benchmark, which is comprised 50% of FTSE Global Core Infrastructure 50/50 Index and 50% of FTSE EPRA Nareit Developed Index (the “Index”), returned -5.10% during the same period. |
The Fund had an NAV of $34.25 per share on August 31, 2022 and ended the Reporting Period with an NAV of $32.32 per share. The Fund’s market price on August 31, 2023 was $32.19 per share. |
Q | What key factors were responsible for the Fund’s performance during the Reporting Period? |
A | The Fund is an actively managed exchange-traded fund (“ETF”) that seeks long-term growth of capital by investing in companies that may be aligned, at the time a given investment is first added to the Fund’s portfolio, with the key themes associated with secular growth drivers for real estate and infrastructure assets, which include, but are not limited to, Technological Innovation, Environmental Sustainability, New Age Consumer and Future of Health Care (the “Key Themes”). Additionally, as part of its investment process, the Goldman Sachs Fundamental Equity Team divides these Key Themes into multiple sub-themes. |
During the Reporting Period, the Fund generated a negative absolute return, as real estate and infrastructure equities, which tend to be characterized by steady compounding growth, lagged the strong rally in growth-oriented, technology-focused stocks. |
On a relative basis, the Fund outperformed the Index during the Reporting Period, benefiting from its focus on sectors exposed to secular growth and its avoidance of sectors we consider to be on the wrong side of disruption. For example, the Fund was helped by its smaller allocation than the Index in retail and office real estate investment trusts (“REITs”), which generally posted negative returns during the Reporting Period, and by its selective exposure to health care real estate securities, which performed well overall. That said, at the sector level as a whole, the Fund benefited most during the Reporting Period from its allocation to utilities. The utilities sector outperformed the broader equity market during the Reporting Period, as many investors adopted defensive stances heading into 2023. Conversely, the Fund was hurt by its underweight position compared to the Index in hotel real estate securities, which gained on positive U.S. employment news, driven by an increase in nonfarm payrolls, led, in turn, by leisure, hospitality, professional and business services. |
Among Key Themes, New Age Consumer contributed most positively to the Fund’s relative returns during the Reporting Period, as young consumers, with different lifestyles and values from previous generations, fueled demand for experiences over things. The Fund’s three other Key Themes detracted from relative results. Tech Innovation was the weakest performing Key Theme during the Reporting Period, as central bank interest rate hikes put downward pressure on sectors with longer-duration assets, such as telecommunications towers. (Duration is a measure of interest rate sensitivity.) Among sub-themes, the Fund’s best performer was increased leisure time, while its most notable detractor was digitization. |
On the country level, an overweight exposure relative to the Index in France contributed most positively to the Fund’s relative returns. European utilities performed well amid relatively milder weather, which reduced energy demand and calmed fears about potential shortages. However, an underweight position in Japan weighed on the Fund’s performance, as Japanese stocks rose in line with global equities on expectations of the potential peaking of inflation in the U.S. and Europe, the slowing pace of central bank interest rate hikes and receding concerns about recession. Additionally, as Japan relaxed entry rules from China, inbound tourism saw a sharp recovery, with the number of foreign visitors reaching 60% of pre-COVID levels. |
17
PORTFOLIO RESULTS
Q | Which individual stock positions contributed most positively to the Fund’s relative returns during the Reporting Period? |
A | Relative to the Index, the Fund benefited most from overweight positions in VINCI, a French infrastructure and construction firm; ENGIE, a France-based power, gas and infrastructure company; and Veolia Environnement, a French environmental management services provider (2.00%, 1.54% and 1.56% of Fund net assets as of August 31, 2023, respectively). Each of these stocks generated a double-digit positive return within the Index during the Reporting Period. |
Q | Which individual stock positions detracted most from the Fund’s relative returns during the Reporting Period? |
A | Relative to the Index, the Fund’s overweight positions in American Tower, a REIT that owns and operates wireless communications and broadcast towers in the U.S.; SBA Communications, a U.S. provider of wireless communications infrastructure; and Eversource Energy, a U.S. utility company that provides electricity, natural gas and water services (3.70%, 2.50% and 1.72% of Fund net assets as of August 31, 2023, respectively) detracted most from relative performance. All three stocks recorded double-digit negative returns within the Index during the Reporting Period. |
Q | How did the Fund use derivatives and similar instruments during the Reporting Period? |
A |
During the Reporting Period, the Fund did not invest in derivatives or similar instruments. The Fund does not employ derivatives as a source of alpha generation, although it may use them to equitize excess cash. |
Q | Were there any changes to the Fund’s portfolio management team during the Reporting Period? |
A | There were no changes to the Fund’s portfolio management team during the Reporting Period. |
Q | What was the Fund’s sector positioning relative to the Index at the end of the Reporting Period?1 |
Sector Name | Fund | Index | ||||||||
Real Estate | 53.35 | % | 52.88 | % | ||||||
Utilities | 24.79 | 25.34 | ||||||||
Industrials | 13.56 | 15.21 | ||||||||
Energy | 2.28 | 5.45 | ||||||||
Communication Services | 2.16 | 1.04 | ||||||||
Health Care | 1.51 | 0.06 | ||||||||
Materials | 1.26 | 0.00 | ||||||||
Financials | 0.00 | 0.02 | ||||||||
Consumer Discretionary | 0.00 | 0.00 | ||||||||
Cash | 1.08 | 0.00 |
Q | What was the Fund’s country positioning relative to the Index at the end of the Reporting Period?1 |
Country Name | Fund | Index | ||||||||
U.S. | 62.07 | % | 58.07 | % | ||||||
U.K. | 10.31 | 3.59 | ||||||||
Australia | 5.81 | 4.75 | ||||||||
France | 5.11 | 1.18 | ||||||||
Spain | 3.97 | 1.83 | ||||||||
Japan | 2.87 | 6.59 | ||||||||
Italy | 2.33 | 0.60 | ||||||||
Germany | 1.71 | 1.10 | ||||||||
Canada | 1.51 | 5.49 | ||||||||
Thailand | 1.28 | 1.03 | ||||||||
Netherlands | 1.19 | 0.29 | ||||||||
Denmark | 0.77 | 0.00 | ||||||||
Cash | 1.08 | 0.00 |
1 | Country and sector classifications for securities may differ between the above listing and the Schedule of Investments due to differing classification methodologies. The classification methodology used for the above listing is as set forth by FTSE Russell Group. The Fund’s composition may differ over time. Consequently, the Fund’s overall country and sector allocations may differ from percentages contained in the chart above. The percentage shown for each investment category reflects the value of investments in that category as a percentage of market value. Figures above may not sum to 100% due to rounding due to the presence of cash. |
18
FUND BASICS
Goldman Sachs Future Real Estate and Infrastructure Equity ETF
as of August 31, 2023
FUND SNAPSHOT |
| |||||
As of August 31, 2023 | ||||||
Market Price1 | $ | 32.19 | ||||
Net Asset Value (NAV)1 | $ | 32.32 |
1 | The Market Price is the price at which the Fund’s shares are trading on the NYSE Arca, Inc. The Market Price of the Fund’s shares will fluctuate and, at the time of sale, shares may be worth more or less than the original investment or the Fund’s then current net asset value (“NAV”). The NAV is the market value of one share of the Fund. This amount is derived by dividing the total value of all the securities in the Fund’s portfolio, plus other assets, less any liabilities, by the number of Fund shares outstanding. Fund shares are not individually redeemable and are issued and redeemed by the Fund at their NAV only in large, specified blocks of shares called creation units. Shares otherwise can be bought and sold only through exchange trading at market price (not NAV). Shares may trade at a premium or discount to their NAV in the secondary market. Information regarding how often shares of the Fund traded on NYSE Arca at a price above (i.e., at a premium) or below (i.e., at a discount) the NAV of the Fund can be found at www.GSAMFUNDS.com/ETFs. |
TOP TEN HOLDINGS AS OF 8/31/232 | ||||||||||
Holding | % of Net Assets | Line of Business | Country | |||||||
Prologis, Inc. REIT | 5.6 | % | Real Estate | United States | ||||||
Transurban Group | 4.3 | Industrials | Australia | |||||||
National Grid PLC | 4.1 | Utilities | United Kingdom | |||||||
NextEra Energy, Inc. | 3.9 | Utilities | United States | |||||||
Equinix, Inc. REIT | 3.7 | Real Estate | United States | |||||||
American Tower Corp. REIT | 3.7 | Real Estate | United States | |||||||
AvalonBay Communities, Inc. REIT | 2.8 | Real Estate | United States | |||||||
Alexandria Real Estate Equities, Inc. REIT | 2.8 | Real Estate | United States | |||||||
Welltower, Inc. REIT | 2.7 | Real Estate | United States | |||||||
Digital Realty Trust, Inc. REIT | 2.6 | Real Estate | United States |
2 | The top 10 holdings may not be representative of the Fund’s future investments. |
For more information about the Fund, please refer to www.GSAMFUNDS.com/ETFs. There, you can learn more about the Fund’s investment strategies, holdings, and performance.
19
GOLDMAN SACHS FUTURE REAL ESTATE AND INFRASTRUCTURE EQUITY ETF
Performance Summary
August 31, 2023
The following graph shows the value, as of August 31, 2023, of a $10,000 investment made on November 9, 2021 (commencement of operations) in Shares at NAV. For comparative purposes, the performance of the Fund’s benchmark, the 50% FTSE Global Core Infrastructure 50/50 Index and 50% FTSE EPRA Nareit Developed Index, is shown. Performance reflects applicable fee waivers and/or expense limitations in effect during the periods shown and in their absence, performance would be reduced. Returns do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the sale of Fund shares. Certain factors may affect Fund performance including, but not limited to, Fund operating fees and expenses, portfolio turnover and creation and redemption in-kind transactions. The returns set forth below represent past performance. Past performance does not guarantee future results. The Fund’s NAV and investment return may fluctuate. These fluctuations may cause an investor’s shares to be worth more or less than their original cost. Current performance may be lower or higher than the performance quoted below. Please visit our web site at www.GSAMFUNDS.com/ETFs to obtain the most recent month-end returns.
Goldman Sachs Future Real Estate and Infrastructure Equity ETF’s Lifetime Performance |
Performance of a $10,000 Investment, with distributions reinvested, from November 9, 2021 through August 31, 2023.
Average Annual Total Return through August 31, 2023* | 1 Year Return | Since Inception | ||||
Shares based on NAV (Commenced November 9, 2021) |
-3.77% | -9.66% | ||||
| ||||||
Shares based on Market Price (Commenced November 9, 2021) |
-4.15% | -9.86% | ||||
| ||||||
50% FTSE Global Core Infrastructure 50/50 Index and 50% FTSE EPRA Nareit Developed Index |
-5.10% | -7.13% | ||||
|
* | Total returns are calculated assuming purchase of a share at the market price or NAV on the first day and sale of a share at the market price or NAV on the last day of each period reported. The Total Returns based on NAV and Market Price assume the reinvestment of dividends and do not reflect brokerage commissions in connection with the purchase or sale of Fund shares, which if included would lower the performance shown above. The NAV used in the Total Return calculations assumes all management fees incurred by the Fund. Market Price returns are based upon the last trade at 4:00 pm EST and do not reflect the returns you would receive if you traded shares at other times. The first day of secondary market trading is typically several days after the date on which the Fund commenced investment operations; therefore, the NAV of the Fund is used as a proxy for the period from inception of investment operations to the first day of secondary market trading to calculate the Market Price returns. |
20
PORTFOLIO RESULTS
Goldman Sachs Future Tech Leaders Equity ETF
Investment Objective
The Goldman Sachs Future Tech Leaders Equity ETF (the “Fund”) seeks long-term growth of capital.
Portfolio Management Discussion and Analysis
Effective June 1, 2023, the Fund’s secondary benchmark changed from the custom MSCI ACWI Select Information Technology + Communication Services + Internet & Direct Marketing Retail (Excluding >$100B Market Capitalization) Index to the custom MSCI ACWI Select Information Technology + Communication Services (excluding >$100B Market Cap) Index. Below, the Goldman Sachs Fundamental Equity Team discusses the Fund’s performance and positioning for the 12-month period ended August 31, 2023 (the “Reporting Period”).
Q | How did the Fund perform during the Reporting Period? |
A | During the Reporting Period, the Fund returned 4.05% based on net asset value (“NAV”) and 4.09% based on market price. The Fund’s primary benchmark, the MSCI All Country World Index (Net, USD, Unhedged) (the “MSCI ACWI Index”), returned 13.95% during the same period. The Fund’s new secondary benchmark, which returned 10.12% during the Reporting Period, 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 more than $100 billion. |
The Fund had an NAV of $24.12 per share on August 31, 2022 and ended the Reporting Period with an NAV of $25.09 per share. The Fund’s market price on August 31, 2023 was $25.06 per share. |
Q | What key factors were responsible for the Fund’s performance during the Reporting Period? |
A | The Fund is an actively managed exchange-traded fund (“ETF”) that seeks long-term growth of capital by investing in companies that, at the time a given investment is first added to the Fund’s portfolio, are driving technological innovation or benefiting from the enablement of technology and have the potential to grow their business over many years. |
During the Reporting Period, the Fund recorded a positive absolute return, as global information technology stocks |
advanced. The gains were driven primarily by rising investor enthusiasm around generative artificial intelligence (“AI”) as well as by resilient fundamentals and corporate earnings. Easing market concerns about interest rates provided an additional tailwind for the sector overall and for large-cap and mid-cap companies in particular. Investors continued to focus on identifying early winners among semiconductor companies and public cloud companies that offered technologies critical for the buildout of AI. (A public cloud company provides computing resources to users over the public internet.) Moreover, multiple compression during 2022 appeared to have created compelling investment opportunities across the information technology sector, though stock dispersion continued to be a factor. (Multiple compression is when a company’s multiples, such as the price/earnings ratio, is reduced due to increased earnings without an increase in stock price. Stock dispersion is a measure of how much a stock’s return differs from the market average; the higher the dispersion, the riskier the investment is considered.) |
On a relative basis, the Fund underperformed the MSCI ACWI Index during the Reporting Period. The underperformance can be attributed to persistent inflation, elevated interest rates, recessionary concerns and China’s weaker than market expected economic recovery. Overall, growth stocks tend to be sensitive to interest rate movements, and as interest rates rose during the Reporting Period, investors seemed to retreat from more growth-oriented sectors into more value- and defensive-oriented sectors. This trend was exacerbated by sticky inflation data that heightened investors’ recessionary concerns, further increasing the appeal of more defensive positioning. Additionally, investors may have been discouraged by the weak macroeconomic recovery in China following the reopening of that country’s economy. Lastly, large-cap equities broadly outperformed equities further down the market capitalization spectrum, which benefited market-cap weighted indices and contributed to the relative |
21
PORTFOLIO RESULTS
underperformance of the Fund, which focuses on small-cap and mid-cap equities. |
From a sector perspective, the Fund’s overweight compared to the MSCI ACWI Index in information technology hurt relative performance the most, with exposure to China a notable detractor. The Fund benefited from stock selection and an underweight position in the consumer discretionary sector. |
As for countries, stock selection in the U.S., along with an overweight position in China, detracted from the Fund’s relative returns during the Reporting Period. The Fund’s lack of exposure to large-cap and mega-cap U.S. stocks was the primary driver of its relative underperformance. On the positive side, the Fund was helped by stock selection in Taiwan and by an overweight allocation versus the MSCI ACWI Index to Argentina. |
Q | Which individual stock positions detracted most from the Fund’s relative returns during the Reporting Period? |
A | During the Reporting Period, the Fund was hindered by its exposure to U.S.-based BILL Holdings, a provider of software-as-a-service, cloud-based payments, and spending and expense management products; NVIDIA, a U.S. supplier of AI hardware and software; and Silergy, a China-headquartered semiconductor manufacturer (0.00%,1 0.00% and 0.86% of Fund net assets as of August 31, 2023, respectively.) All three stocks posted single-digit negative returns within the MSCI ACWI Index during the Reporting Period. |
Q | Which individual stock positions contributed most positively to the Fund’s relative returns during the Reporting Period? |
A | Compared to the Index, the Fund benefited most from its exposure to HubSpot, a U.S. provider of cloud-based marketing, sales and consumer services platforms; AppLovin, a creator of software platforms for mobile application developers to enhance the marketing and monetization of their applications; and MercadoLibre, an Argentina-based operator of online marketplaces dedicated to e-commerce and online auctions (2.76%, 2.11% and 2.57% of Fund net assets as of August 31, 2023, respectively). During the Reporting Period, HubSpot recorded a single-digit positive return with the MSCI ACWI Index. AppLovin and MercadoLibre each recorded a modest positive return within the MSCI ACWI Index during the Reporting Period. |
Q | How did the Fund use derivatives and similar instruments during the Reporting Period? |
A | During the Reporting Period, the Fund did not invest in derivatives or similar instruments. The Fund does not employ derivatives as a source of alpha generation, although it may use them to equitize excess cash. |
Q | Were there any changes to the Fund’s portfolio management team during the Reporting Period? |
A | There were no changes to the Fund’s portfolio management team during the Reporting Period. |
Q | What was the Fund’s sector positioning relative to the MSCI ACWI Index at the end of the Reporting Period?2 |
Sector Name | Fund | MSCI ACWI Index |
||||||||
Information Technology | 71.14 | % | 22.06 | % | ||||||
Communication Services | 12.34 | 7.51 | ||||||||
Consumer Discretionary | 5.41 | 11.32 | ||||||||
Financials | 3.81 | 15.42 | ||||||||
Industrials | 3.46 | 10.45 | ||||||||
Real Estate | 1.43 | 2.33 | ||||||||
Health Care | 1.02 | 11.76 | ||||||||
Consumer Staples | 0.00 | 7.15 | ||||||||
Energy | 0.00 | 4.90 | ||||||||
Materials | 0.00 | 4.48 | ||||||||
Utilities | 0.00 | 2.63 | ||||||||
Cash | 1.39 | 0.00 |
1 | Some weights are 0.00% at August 31, 2023 either because those positions were eliminated during the most recent rebalance given the Index construction methodology or were not held at all during the Reporting Period as they did not meet the Fund’s investment criteria. |
22
PORTFOLIO RESULTS
Q | What was the Fund’s country positioning relative to the MSCI AWCI Index at the end of the Reporting Period?2 |
Country Name | Fund | MSCI ACWI Index |
||||||||
U.S. | 61.10 | % | 62.21 | % | ||||||
Taiwan | 9.81 | 1.56 | ||||||||
China | 9.62 | 3.10 | ||||||||
Japan | 6.68 | 5.49 | ||||||||
Argentina | 2.57 | 0.10 | ||||||||
Netherlands | 2.47 | 1.06 | ||||||||
Spain | 1.70 | 0.63 | ||||||||
Germany | 1.47 | 2.06 | ||||||||
South Korea | 1.39 | 1.27 | ||||||||
Australia | 1.20 | 1.82 | ||||||||
Singapore | 0.58 | 0.34 | ||||||||
Austria | 0.00 | 0.04 | ||||||||
Belgium | 0.00 | 0.23 | ||||||||
Brazil | 0.00 | 0.55 | ||||||||
Canada | 0.00 | 2.82 | ||||||||
Chile | 0.00 | 0.05 | ||||||||
Colombia | 0.00 | 0.01 | ||||||||
Czech Republic | 0.00 | 0.02 | ||||||||
Denmark | 0.00 | 0.78 | ||||||||
Egypt | 0.00 | 0.01 | ||||||||
Finland | 0.00 | 0.21 | ||||||||
France | 0.00 | 2.97 | ||||||||
Greece | 0.00 | 0.05 | ||||||||
Hong Kong | 0.00 | 0.57 | ||||||||
Hungary | 0.00 | 0.03 | ||||||||
India | 0.00 | 1.54 | ||||||||
Indonesia | 0.00 | 0.21 | ||||||||
Ireland | 0.00 | 0.50 | ||||||||
Israel | 0.00 | 0.16 | ||||||||
Italy | 0.00 | 0.63 | ||||||||
Kuwait | 0.00 | 0.09 | ||||||||
Malaysia | 0.00 | 0.15 | ||||||||
Mexico | 0.00 | 0.29 | ||||||||
New Zealand | 0.00 | 0.05 | ||||||||
Norway | 0.00 | 0.16 | ||||||||
Peru | 0.00 | 0.03 | ||||||||
Philippines | 0.00 | 0.06 | ||||||||
Poland | 0.00 | 0.09 | ||||||||
Portugal | 0.00 | 0.05 | ||||||||
Qatar | 0.00 | 0.09 | ||||||||
Saudi Arabia | 0.00 | 0.44 | ||||||||
South Africa | 0.00 | 0.33 | ||||||||
Sweden | 0.00 | 0.75 | ||||||||
Switzerland | 0.00 | 2.45 | ||||||||
Thailand | 0.00 | 0.21 | ||||||||
Turkey | 0.00 | 0.07 | ||||||||
United Arab Emirates | 0.00 | 0.14 | ||||||||
U.K. | 0.00 | 3.53 |
2 | Country and sector classifications for securities may differ between the above listing and the Schedule of Investments due to differing classification methodologies. The classification methodology used for the above listing is as set forth by MSCI. The Fund’s composition may differ over time. Consequently, the Fund’s overall country and sector allocations may differ from percentages contained in the chart above. The percentage shown for each investment category reflects the value of investments in that category as a percentage of market value. Investments in the securities lending vehicle represented 0.00% of the Fund’s net assets as of August 31, 2023. Figures above may not sum to 100% due to rounding due to the presence of cash. |
23
FUND BASICS
Goldman Sachs Future Tech Leaders Equity ETF
as of August 31, 2023
FUND SNAPSHOT |
| |||||
As of August 31, 2023 | ||||||
Market Price1 | $ | 25.06 | ||||
Net Asset Value (NAV)1 | $ | 25.09 |
1 | The Market Price is the price at which the Fund’s shares are trading on the NYSE Arca, Inc. The Market Price of the Fund’s shares will fluctuate and, at the time of sale, shares may be worth more or less than the original investment or the Fund’s then current net asset value (“NAV”). The NAV is the market value of one share of the Fund. This amount is derived by dividing the total value of all the securities in the Fund’s portfolio, plus other assets, less any liabilities, by the number of Fund shares outstanding. Fund shares are not individually redeemable and are issued and redeemed by the Fund at their NAV only in large, specified blocks of shares called creation units. Shares otherwise can be bought and sold only through exchange trading at market price (not NAV). Shares may trade at a premium or discount to their NAV in the secondary market. Information regarding how often shares of the Fund traded on NYSE Arca at a price above (i.e., at a premium) or below (i.e., at a discount) the NAV of the Fund can be found at www.GSAMFUNDS.com/ETFs. |
TOP TEN HOLDINGS AS OF 8/31/232 |
|
|||||||||
Holding | % of Net Assets | Line of Business | Country | |||||||
Workday, Inc., Class A | 3.3 | % | Information Technology | United States | ||||||
KLA Corp. | 3.1 | Information Technology | United States | |||||||
Marvell Technology, Inc. | 3.0 | Information Technology | United States | |||||||
Motorola Solutions, Inc. | 2.8 | Information Technology | United States | |||||||
HubSpot, Inc. | 2.8 | Information Technology | United States | |||||||
Datadog, Inc., Class A | 2.6 | Information Technology | United States | |||||||
MercadoLibre, Inc. | 2.6 | Consumer Discretionary | Brazil | |||||||
NetEase, Inc. | 2.4 | Communication Services | China | |||||||
United Microelectronics Corp. | 2.3 | Information Technology | Taiwan | |||||||
Dynatrace, Inc. | 2.3 | Information Technology | United States |
2 | The top 10 holdings may not be representative of the Fund’s future investments. |
For more information about the Fund, please refer to www.GSAMFUNDS.com/ETFs. There, you can learn more about the Fund’s investment strategies, holdings, and performance.
24
GOLDMAN SACHS FUTURE TECH LEADERS EQUITY ETF
Performance Summary
August 31, 2023
The following graph shows the value, as of August 31, 2023, of a $10,000 investment made on September 14, 2021 (commencement of operations) in Shares at NAV. For comparative purposes, the performance of the Fund’s benchmark, the MSCI ACWI Index, and the Fund’s secondary custom benchmark, MSCI ACWI Select Information Technology + Communication Services (excluding >$100B Market Cap) Index, are shown. Performance reflects applicable fee waivers and/or expense limitations in effect during the periods shown and in their absence, performance would be reduced. Returns do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the sale of Fund shares. Certain factors may affect Fund performance including, but not limited to, Fund operating fees and expenses, portfolio turnover and creation and redemption in-kind transactions. The returns set forth below represent past performance. Past performance does not guarantee future results. The Fund’s NAV and investment return may fluctuate. These fluctuations may cause an investor’s shares to be worth more or less than their original cost. Current performance may be lower or higher than the performance quoted below. Please visit our web site at www.GSAMFUNDS.com/ETFs to obtain the most recent month-end returns.
Goldman Sachs Future Tech Leaders Equity ETF’s Lifetime Performance |
Performance of a $10,000 Investment, with distributions reinvested, from September 14, 2021 through August 31, 2023.
Average Annual Total Return through August 31, 2023* | 1 Year Return | Since Inception | ||||
Shares based on NAV (Commenced September 14, 2021) |
4.05% | -21.37% | ||||
| ||||||
Shares based on Market Price (Commenced September 14, 2021) |
4.09% | -21.42% | ||||
| ||||||
MSCI ACWI Index |
13.95% | -1.76% | ||||
| ||||||
MSCI ACWI Select Information Technology + Communication Services (excluding >$100B Market Cap) Index |
10.12% | -11.18% | ||||
|
* | Total returns are calculated assuming purchase of a share at the market price or NAV on the first day and sale of a share at the market price or NAV on the last day of each period reported. The Total Returns based on NAV and Market Price assume the reinvestment of dividends and do not reflect brokerage commissions in connection with the purchase or sale of Fund shares, which if included would lower the performance shown above. The NAV used in the Total Return calculation assumes all management fees incurred by the Fund. Market Price returns are based upon the last trade at 4:00 pm EST and do not reflect the returns you would receive if you traded shares at other times. The first day of secondary market trading is typically several days after the date on which the Fund commenced investment operations; therefore, the NAV of the Fund is used as a proxy for the period from inception of investment operations to the first day of secondary market trading to calculate the Market Price returns. |
25
FUND BASICS
Index Definitions and Industry Terms
Alpha: The excess returns of a fund relative to the return of a benchmark index is the fund’s alpha.
Goldman Sachs Future Consumer Equity ETF
MSCI ACWI Growth Index captures large and mid cap securities exhibiting overall growth style characteristics across 23 developed markets and 24 emerging markets countries.
Goldman Sachs Future Health Care ETF
MSCI ACWI Health Care Index includes large and mid cap securities across 23 developed markets and 24 emerging markets countries.
Goldman Sachs Future Planet Equity ETF
MSCI ACWI Index captures large, mid and small cap representation across 23 developed markets and 24 emerging markets countries.
Goldman Sachs Future Real Estate and Infrastructure Equity ETF
50% FTSE Global Core Infrastructure 50/50 Index give participants an industry-defined interpretation of infrastructure and adjust the exposure to certain infrastructure sub-sectors.
50% FTSE EPRA Nareit Developed Index is designed to represent general trends in eligible real estate equities worldwide.
Goldman Sachs Future Tech Leaders Equity ETF
MSCI ACWI Index captures large, mid and small cap representation across 23 developed markets and 24 emerging markets countries.
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.
26
GOLDMAN SACHS FUTURE CONSUMER EQUITY ETF
August 31, 2023
Shares | Description | Value |
||||||
Common Stocks – 99.4% | ||||||||
Communication Services – 30.4% | ||||||||
80,378 | Alphabet, Inc., Class C* | $ | 11,039,918 | |||||
82,112 | Bumble, Inc., Class A* | 1,377,839 | ||||||
47,131 | CTS Eventim AG & Co. KGaA (Germany) | 2,941,335 | ||||||
25,726 | Electronic Arts, Inc. | 3,086,606 | ||||||
44,783 | Live Nation Entertainment, Inc.* | 3,785,507 | ||||||
26,942 | Meta Platforms, Inc., Class A* | 7,971,868 | ||||||
9,758 | NAVER Corp. (South Korea) | 1,583,576 | ||||||
110,160 | NetEase, Inc. (China) | 2,301,044 | ||||||
20,063 | Sea Ltd. ADR (Singapore)* | 754,971 | ||||||
63,143 | Snap, Inc., Class A* | 653,530 | ||||||
98,247 | Tencent Holdings Ltd. (China) | 4,071,830 | ||||||
32,633 | T-Mobile US, Inc.* | 4,446,246 | ||||||
41,678 | Walt Disney Co. (The)* | 3,487,615 | ||||||
|
|
|||||||
47,501,885 | ||||||||
|
|
|||||||
Consumer Discretionary – 26.6% | ||||||||
87,256 | Amazon.com, Inc.* | 12,042,201 | ||||||
23,781 | Basic-Fit NV (Netherlands)*(a) | 726,830 | ||||||
10,415 | Etsy, Inc.* | 766,231 | ||||||
158,716 | Farfetch Ltd., Class A (United Kingdom)*(b) | 452,341 | ||||||
44,629 | Foot Locker, Inc. | 875,621 | ||||||
5,929 | LVMH Moet Hennessy Louis Vuitton SE (France) | 5,033,490 | ||||||
201,194 | Meituan, Class B (China)*(a) | 3,296,895 | ||||||
2,028 | MercadoLibre, Inc. (Brazil)* | 2,783,146 | ||||||
56,961 | Moncler SpA (Italy) | 3,872,570 | ||||||
44,026 | NIKE, Inc., Class B | 4,477,884 | ||||||
660,939 | Samsonite International SA*(a) | 2,212,472 | ||||||
241,626 | Shenzhou International Group Holdings Ltd. (China) | 2,480,428 | ||||||
5,901 | Ulta Beauty, Inc.* | 2,449,092 | ||||||
|
|
|||||||
41,469,201 | ||||||||
|
|
|||||||
Consumer Staples – 5.5% | ||||||||
866,367 | Budweiser Brewing Co. APAC Ltd. (China)(a) | 1,878,183 | ||||||
372,560 | Davide Campari-Milano NV (Italy) | 4,880,602 | ||||||
6,735 | Oddity Tech Ltd., Class A (Israel)*(b) | 280,109 | ||||||
103,068 | Proya Cosmetics Co. Ltd., Class A (China) | 1,582,448 | ||||||
|
|
|||||||
8,621,342 | ||||||||
|
|
|||||||
Financials – 5.9% | ||||||||
1,553 | Adyen NV (Netherlands)*(a) | 1,302,087 | ||||||
19,140 | Mastercard, Inc., Class A | 7,897,929 | ||||||
|
|
|||||||
9,200,016 | ||||||||
|
|
|||||||
Health Care – 1.3% | ||||||||
12,526 | Illumina, Inc.* | 2,069,546 | ||||||
|
|
|||||||
Industrials – 2.5% | ||||||||
113,138 | Experian PLC | 3,959,684 | ||||||
|
|
|||||||
Common Stocks – (continued) | ||||||||
Information Technology – 14.2% | ||||||||
19,643 | Apple, Inc. | 3,690,330 | ||||||
745,725 | Locaweb Servicos de Internet SA (Brazil)(a) | 1,064,902 | ||||||
58,835 | MediaTek, Inc. (Taiwan) | 1,302,456 | ||||||
19,322 | NVIDIA Corp. | 9,536,373 | ||||||
384,742 | Taiwan Semiconductor Manufacturing Co. Ltd. (Taiwan) | 6,632,546 | ||||||
|
|
|||||||
22,226,607 | ||||||||
|
|
|||||||
Materials – 4.5% | ||||||||
63,658 | Ball Corp. | 3,466,178 | ||||||
38,252 | DSM-Firmenich AG (Switzerland) | 3,535,157 | ||||||
|
|
|||||||
7,001,335 | ||||||||
|
|
|||||||
Real Estate – 3.0% | ||||||||
25,964 | American Tower Corp. REIT | 4,707,792 | ||||||
|
|
|||||||
Utilities – 5.5% | ||||||||
184,890 | EDP Renovaveis SA (Spain) | 3,392,333 | ||||||
76,521 | NextEra Energy, Inc. | 5,111,603 | ||||||
|
|
|||||||
8,503,936 | ||||||||
|
|
|||||||
TOTAL COMMON STOCKS | ||||||||
(Cost $161,557,638) | $ | 155,261,344 | ||||||
|
|
|||||||
|
TOTAL INVESTMENTS BEFORE
SECURITIES LENDING REINVESTMENT VEHICLE |
| ||||||
(Cost $161,557,638) | $ | 155,261,344 | ||||||
|
|
Shares |
Dividend Rate |
Value | ||||||
Securities Lending Reinvestment Vehicle – 0.5%(c) | ||||||||
Goldman Sachs Financial Square Government Fund – Institutional Shares |
| |||||||
747,637 | 5.234 | % | $ | 747,637 | ||||
(Cost $747,637) |
|
|||||||
|
||||||||
TOTAL INVESTMENTS – 99.9% |
| |||||||
(Cost $162,305,275) |
|
$ | 156,008,981 | |||||
|
||||||||
OTHER ASSETS IN EXCESS OF LIABILITIES – 0.1% |
|
199,549 | ||||||
|
||||||||
NET ASSETS – 100.0% |
|
$ | 156,208,530 | |||||
|
The accompanying notes are an integral part of these financial statements. | 27 |
GOLDMAN SACHS FUTURE CONSUMER EQUITY ETF
Schedule of Investments (continued)
August 31, 2023
The percentage shown for each investment category reflects the value of investments in that category as a percentage of net assets. | ||
* |
Non-income producing security. | |
(a) |
Exempt from registration under Rule 144A of the Securities Act of 1933. | |
(b) |
All or a portion of security is on loan. | |
(c) |
Represents an affiliated issuer. |
| ||
Investment Abbreviations: | ||
ADR |
—American Depositary Receipt | |
PLC |
—Public Limited Company | |
REIT |
—Real Estate Investment Trust | |
|
28 | The accompanying notes are an integral part of these financial statements. |
GOLDMAN SACHS FUTURE HEALTH CARE EQUITY ETF
Schedule of Investments
August 31, 2023
Shares |
Description | Value | ||||||
Common Stocks – 98.3% | ||||||||
Denmark – 1.7% | ||||||||
51,327 | Genmab A/S ADR (Health Care)* | $ | 1,965,311 | |||||
|
|
|||||||
France – 0.6% | ||||||||
2,411 | Sartorius Stedim Biotech (Health Care) | 685,858 | ||||||
|
|
|||||||
Italy – 1.1% | ||||||||
37,056 | Stevanato Group SpA (Health Care) | 1,187,274 | ||||||
|
|
|||||||
Japan – 6.0% | ||||||||
115,978 | Chugai Pharmaceutical Co. Ltd. (Health Care) | 3,550,599 | ||||||
18,565 | Hoya Corp. (Health Care) | 2,060,086 | ||||||
60,307 | Kyowa Kirin Co. Ltd. (Health Care) | 1,106,225 | ||||||
|
|
|||||||
6,716,910 | ||||||||
|
|
|||||||
Netherlands – 1.0% | ||||||||
2,227 | Argenx SE ADR (Health Care)* | 1,119,045 | ||||||
|
|
|||||||
Switzerland – 0.8% | ||||||||
1,625 | Lonza Group AG (Health Care) | 899,477 | ||||||
|
|
|||||||
United Kingdom – 5.3% | ||||||||
41,396 | AstraZeneca PLC (Health Care) | 5,592,750 | ||||||
108,317 | Oxford Nanopore Technologies PLC (Health Care)* | 326,664 | ||||||
|
|
|||||||
5,919,414 | ||||||||
|
|
|||||||
United States – 81.8% | ||||||||
87,574 | 2seventy bio, Inc. (Health Care)* | 454,509 | ||||||
6,932 | Agilent Technologies, Inc. (Health Care) | 839,257 | ||||||
15,965 | Alexandria Real Estate Equities, Inc. REIT (Real Estate) | 1,857,368 | ||||||
4,597 | Align Technology, Inc. (Health Care)* | 1,701,534 | ||||||
8,456 | Alnylam Pharmaceuticals, Inc. (Health Care)* | 1,672,766 | ||||||
10,722 | Axonics, Inc. (Health Care)* | 614,371 | ||||||
13,043 | Beam Therapeutics, Inc. (Health Care)* | 302,337 | ||||||
14,487 | Biogen, Inc. (Health Care)* | 3,873,244 | ||||||
35,133 | BioMarin Pharmaceutical, Inc. (Health Care)* | 3,210,453 | ||||||
113,839 | Boston Scientific Corp. (Health Care)* | 6,140,476 | ||||||
52,004 | Bristol-Myers Squibb Co. (Health Care) | 3,206,047 | ||||||
8,216 | Cooper Cos., Inc. (The) (Health Care) | 3,039,838 | ||||||
18,054 | CSL Ltd. (Health Care) | 3,198,298 | ||||||
6,358 | Cytokinetics, Inc. (Health Care)* | 222,148 | ||||||
9,119 | Danaher Corp. (Health Care) | 2,416,535 | ||||||
32,623 | Dexcom, Inc. (Health Care)* | 3,294,271 | ||||||
25,867 | Edwards Lifesciences Corp. (Health Care)* | 1,978,049 | ||||||
15,872 | Eli Lilly & Co. (Health Care) | 8,796,262 | ||||||
25,262 | Exact Sciences Corp. (Health Care)* | 2,113,672 | ||||||
42,258 | Gilead Sciences, Inc. (Health Care) | 3,231,892 | ||||||
34,086 | Halozyme Therapeutics, Inc. (Health Care)* | 1,450,700 | ||||||
3,250 | IDEXX Laboratories, Inc. (Health Care)* | 1,662,082 | ||||||
12,760 | Illumina, Inc. (Health Care)* | 2,108,207 | ||||||
13,599 | Insulet Corp. (Health Care)* | 2,607,064 | ||||||
|
|
|||||||
Common Stocks – (continued) | ||||||||
United States – (continued) | ||||||||
18,051 | Intuitive Surgical, Inc. (Health Care)* | $ | 5,644,187 | |||||
3,852 | iRhythm Technologies, Inc. (Health Care)* | 398,181 | ||||||
2,088 | Mettler-Toledo International, Inc. (Health Care)* | 2,533,746 | ||||||
7,676 | MoonLake Immunotherapeutics (Health Care)* | 441,907 | ||||||
26,683 | Neurocrine Biosciences, Inc. (Health Care)* | 2,905,512 | ||||||
13,599 | Novanta, Inc. (Information Technology)* | 2,270,761 | ||||||
13,366 | Sarepta Therapeutics, Inc. (Health Care)* | 1,617,420 | ||||||
16,334 | Seagen, Inc. (Health Care)* | 3,365,947 | ||||||
3,251 | Shockwave Medical, Inc. (Health Care)* | 716,488 | ||||||
15,916 | Ultragenyx Pharmaceutical, Inc. (Health Care)* | 585,550 | ||||||
12,388 | Veeva Systems, Inc., Class A (Health Care)* | 2,585,376 | ||||||
6,825 | West Pharmaceutical Services, Inc. (Health Care) | 2,777,092 | ||||||
24,799 | Zimmer Biomet Holdings, Inc. (Health Care) | 2,954,057 | ||||||
13,968 | Zoetis, Inc. (Health Care) | 2,661,044 | ||||||
|
|
|||||||
91,448,648 | ||||||||
|
|
|||||||
TOTAL INVESTMENTS – 98.3% | ||||||||
(Cost $109,924,337) | $ | 109,941,937 | ||||||
|
|
|||||||
|
OTHER ASSETS IN EXCESS
OF LIABILITIES – 1.7% |
1,898,708 | ||||||
|
|
|||||||
NET ASSETS – 100.0% | $ | 111,840,645 | ||||||
|
|
The percentage shown for each investment category reflects the value of investments in that category as a percentage of net assets. | ||
* |
Non-income producing security. |
| ||
Investment Abbreviations: | ||
ADR |
—American Depositary Receipt | |
PLC |
—Public Limited Company | |
REIT |
—Real Estate Investment Trust | |
|
The below table represents the sector breakdown of investments as a percentage of total market value of the Fund.
Sector Name | % of Market Value |
|||
|
||||
Health Care |
96.2 | % | ||
Information Technology |
2.1 | |||
Real Estate |
1.7 | |||
|
||||
TOTAL INVESTMENTS | 100.0 | % | ||
|
The accompanying notes are an integral part of these financial statements. | 29 |
GOLDMAN SACHS FUTURE PLANET EQUITY ETF
Schedule of Investments
August 31, 2023
Shares | Description |
Value | ||||||
Common Stocks – 96.6% | ||||||||
Australia – 0.0% | ||||||||
590,949 | Carbon Revolution Ltd. (Consumer Discretionary)* | $ | 65,064 | |||||
|
|
|||||||
Belgium – 1.0% | ||||||||
55,405 | Umicore SA (Materials) | 1,471,475 | ||||||
|
|
|||||||
China – 4.5% | ||||||||
149,788 | Contemporary Amperex Technology Co. Ltd., Class A (Industrials) | 4,868,084 | ||||||
1,803,246 | Xinyi Solar Holdings Ltd. (Information Technology) | 1,506,202 | ||||||
|
|
|||||||
6,374,286 | ||||||||
|
|
|||||||
Denmark – 4.5% | ||||||||
39,008 | Chr Hansen Holding A/S (Materials) | 2,552,836 | ||||||
50,642 | Novozymes A/S, Class B (Materials) | 2,201,361 | ||||||
25,045 | Orsted AS (Utilities)(a) | 1,613,877 | ||||||
|
|
|||||||
6,368,074 | ||||||||
|
|
|||||||
France – 1.0% | ||||||||
40,181 | Imerys SA (Materials) | 1,371,985 | ||||||
|
|
|||||||
Germany – 3.1% | ||||||||
125,075 | Infineon Technologies AG (Information Technology) | 4,481,793 | ||||||
|
|
|||||||
Ireland – 2.7% | ||||||||
44,740 | Kingspan Group PLC (Industrials) | 3,791,453 | ||||||
|
|
|||||||
Italy – 4.2% | ||||||||
893,357 | Enel SpA (Utilities) | 6,021,249 | ||||||
|
|
|||||||
Japan – 9.9% | ||||||||
21,953 | Daikin Industries Ltd. (Industrials) | 3,803,719 | ||||||
51,175 | Horiba Ltd. (Information Technology) | 2,665,171 | ||||||
7,306 | Keyence Corp. (Information Technology) | 3,037,120 | ||||||
73,110 | Kurita Water Industries Ltd. (Industrials) | 2,853,894 | ||||||
34,111 | NIDEC Corp. (Industrials) | 1,788,200 | ||||||
|
|
|||||||
14,148,104 | ||||||||
|
|
|||||||
Netherlands – 1.8% | ||||||||
62,169 | Aalberts NV (Industrials) | 2,591,720 | ||||||
|
|
|||||||
Norway – 0.8% | ||||||||
975,479 | Aker Carbon Capture ASA (Industrials)* | 1,129,804 | ||||||
146,428 | Circa Group AS (Materials)* | 55,063 | ||||||
|
|
|||||||
1,184,867 | ||||||||
|
|
|||||||
Spain – 4.0% | ||||||||
477,155 | Iberdrola SA (Utilities) | 5,675,968 | ||||||
|
|
|||||||
Sweden – 0.4% | ||||||||
62,049 | Re:NewCell AB (Materials)*(b) | 524,163 | ||||||
|
|
|||||||
Switzerland – 7.9% | ||||||||
77,980 | ABB Ltd. (Industrials) | 2,974,408 | ||||||
57,867 | DSM-Firmenich AG (Materials) | 5,347,928 | ||||||
|
|
|||||||
Common Stocks – (continued) | ||||||||
Switzerland – (continued) | ||||||||
10,213 | Sika AG (Materials) | 2,895,370 | ||||||
|
|
|||||||
11,217,706 | ||||||||
|
|
|||||||
Taiwan – 2.0% | ||||||||
268,299 | Delta Electronics, Inc. (Information Technology) | 2,914,966 | ||||||
|
|
|||||||
United Kingdom – 3.2% | ||||||||
1,141,063 | DS Smith PLC (Materials) | 4,515,543 | ||||||
|
|
|||||||
United States – 45.6% | ||||||||
9,537 | Albemarle Corp. (Materials) | 1,895,097 | ||||||
25,970 | Aptiv PLC (Consumer Discretionary)* | 2,634,657 | ||||||
76,300 | Ball Corp. (Materials) | 4,154,535 | ||||||
140,905 | Bloom Energy Corp., Class A (Industrials)* | 2,112,166 | ||||||
19,730 | Danaher Corp. (Health Care) | 5,228,450 | ||||||
53,300 | Danimer Scientific, Inc. (Materials)*(b) | 103,935 | ||||||
47,437 | Darling Ingredients, Inc. (Consumer Staples)* | 2,929,709 | ||||||
46,642 | DocuSign, Inc. (Information Technology)* | 2,346,093 | ||||||
24,899 | Ecolab, Inc. (Materials) | 4,576,685 | ||||||
54,446 | Energy Recovery, Inc. (Industrials)* | 1,479,842 | ||||||
39,061 | Itron, Inc. (Information Technology)* | 2,672,163 | ||||||
66,844 | NextEra Energy, Inc. (Utilities) | 4,465,179 | ||||||
107,862 | Nuvve Holding Corp. (Industrials)* | 52,745 | ||||||
377,706 | Oatly Group AB ADR (Consumer Staples)*(b) | 464,578 | ||||||
27,845 | Schneider Electric SE (Industrials) | 4,792,538 | ||||||
128,687 | Shoals Technologies Group, Inc., Class A (Industrials)* | 2,532,560 | ||||||
17,345 | SolarEdge Technologies, Inc. (Information Technology)* | 2,819,777 | ||||||
15,864 | Trane Technologies PLC (Industrials) | 3,256,245 | ||||||
19,926 | Waste Connections, Inc. (Industrials) | 2,729,663 | ||||||
30,413 | Waste Management, Inc. (Industrials) | 4,768,150 | ||||||
114,135 | Westrock Co. (Materials) | 3,733,356 | ||||||
24,681 | Wolfspeed, Inc. (Information Technology)* | 1,180,245 | ||||||
38,643 | Xylem, Inc. (Industrials) | 4,001,096 | ||||||
|
|
|||||||
64,929,464 | ||||||||
|
|
|||||||
|
TOTAL INVESTMENTS BEFORE
SECURITIES LENDING REINVESTMENT VEHICLE |
| ||||||
(Cost $171,789,377) | $ | 137,647,880 | ||||||
|
|
30 | The accompanying notes are an integral part of these financial statements. |
GOLDMAN SACHS FUTURE PLANET EQUITY ETF
Shares | Dividend Rate |
Value | ||||||
Securities Lending Reinvestment Vehicle – 0.8%(c) | ||||||||
Goldman Sachs Financial Square Government Fund – Institutional Shares |
| |||||||
1,110,381 | 5.234 | % | $ | 1,110,381 | ||||
(Cost $1,110,381) |
|
|||||||
|
||||||||
TOTAL INVESTMENTS – 97.4% |
| |||||||
(Cost $172,899,758) |
|
$ | 138,758,261 | |||||
|
||||||||
OTHER ASSETS IN EXCESS OF LIABILITIES – 2.6% |
|
3,711,632 | ||||||
|
||||||||
NET ASSETS – 100.0% |
|
$ | 142,469,893 | |||||
|
The percentage shown for each investment category reflects the value of investments in that category as a percentage of net assets. | ||
* |
Non-income producing security. | |
(a) |
Exempt from registration under Rule 144A of the Securities Act of 1933. | |
(b) |
All or a portion of security is on loan. | |
(c) |
Represents an affiliated issuer. |
| ||
Investment Abbreviations: | ||
ADR |
—American Depositary Receipt | |
PLC |
—Public Limited Company | |
|
The below table represents the sector breakdown of investments as a percentage of total market value of the Fund.
Sector Name | % of Market Value |
|||
|
||||
Industrials |
35.7 | % | ||
Materials |
25.5 | |||
Information Technology |
17.0 | |||
Utilities |
12.8 | |||
Health Care |
3.8 | |||
Consumer Staples |
2.5 | |||
Consumer Discretionary |
1.9 | |||
Securities Lending Reinvestment Vehicle |
0.8 | |||
|
||||
TOTAL INVESTMENTS | 100.0 | % | ||
|
The accompanying notes are an integral part of these financial statements. | 31 |
GOLDMAN SACHS FUTURE REAL ESTATE AND INFRASTRUCTURE EQUITY ETF
Schedule of Investments
August 31, 2023
Shares |
Description | Value | ||||||
Common Stocks – 98.8% | ||||||||
Communication Services – 2.2% | ||||||||
13,217 | Cellnex Telecom SA (Spain)*(a) | $ | 506,381 | |||||
|
|
|||||||
Energy – 2.3% | ||||||||
3,264 | Cheniere Energy, Inc. | 532,685 | ||||||
|
|
|||||||
Health Care – 1.5% | ||||||||
46,566 | Chartwell Retirement Residences (Canada) | 353,474 | ||||||
|
|
|||||||
Industrials – 13.5% | ||||||||
144,950 | Airports of Thailand PCL NVDR (Thailand)* | 300,103 | ||||||
134,630 | Enav SpA (Italy)(a) | 544,154 | ||||||
13,296 | Ferrovial SE | 422,101 | ||||||
2,106 | Norfolk Southern Corp. | 431,751 | ||||||
117,285 | Transurban Group (Australia) | 1,007,225 | ||||||
4,189 | Vinci SA (France) | 468,111 | ||||||
|
|
|||||||
3,173,445 | ||||||||
|
|
|||||||
Materials – 1.2% | ||||||||
763 | Linde PLC | 295,311 | ||||||
|
|
|||||||
Real Estate – 53.3% | ||||||||
5,626 | Alexandria Real Estate Equities, Inc. REIT | 654,529 | ||||||
10,068 | American Homes 4 Rent, Class A REIT | 362,851 | ||||||
4,781 | American Tower Corp. REIT | 866,891 | ||||||
3,590 | AvalonBay Communities, Inc. REIT | 659,914 | ||||||
27,467 | Big Yellow Group PLC REIT (United Kingdom) | 374,152 | ||||||
19,516 | CTP NV (Netherlands)(a) | 277,480 | ||||||
4,692 | Digital Realty Trust, Inc. REIT | 618,030 | ||||||
1,116 | Equinix, Inc. REIT | 872,020 | ||||||
8,970 | Equity LifeStyle Properties, Inc. REIT | 600,631 | ||||||
3,309 | Extra Space Storage, Inc. REIT | 425,802 | ||||||
23,340 | Goodman Group REIT (Australia) | 353,113 | ||||||
68 | Hoshino Resorts REIT, Inc. REIT (Japan) | 292,860 | ||||||
14,375 | Invitation Homes, Inc. REIT | 490,044 | ||||||
188 | Nippon Prologis REIT, Inc. REIT (Japan) | 378,234 | ||||||
10,495 | Prologis, Inc. REIT | 1,303,479 | ||||||
847 | Public Storage REIT | 234,094 | ||||||
2,611 | SBA Communications Corp. REIT | 586,248 | ||||||
45,779 | Segro PLC REIT (United Kingdom) | 427,758 | ||||||
6,761 | Terreno Realty Corp. REIT | 411,677 | ||||||
32,429 | UNITE Group PLC (The) REIT (United Kingdom) | 386,474 | ||||||
7,571 | Ventas, Inc. REIT | 330,701 | ||||||
18,101 | VICI Properties, Inc. REIT | 558,235 | ||||||
16,710 | Vonovia SE (Germany) | 400,992 | ||||||
7,484 | Welltower, Inc. REIT | 620,274 | ||||||
|
|
|||||||
12,486,483 | ||||||||
|
|
|||||||
Utilities – 24.8% | ||||||||
15,571 | AES Corp. (The) | 279,188 | ||||||
4,140 | Ameren Corp. | 328,178 | ||||||
2,893 | American Water Works Co., Inc. | 401,375 | ||||||
8,020 | CMS Energy Corp. | 450,644 | ||||||
|
|
|||||||
Common Stocks – (continued) | ||||||||
Utilities – (continued) | ||||||||
22,369 | Engie SA (France) | $ | 361,502 | |||||
6,307 | Eversource Energy | 402,513 | ||||||
76,120 | National Grid PLC (United Kingdom) | 955,103 | ||||||
13,568 | NextEra Energy, Inc. | 906,342 | ||||||
2,784 | Orsted AS (Denmark)(a) | 179,398 | ||||||
8,848 | Severn Trent PLC (United Kingdom) | 269,082 | ||||||
11,676 | Veolia Environnement SA (France) | 365,730 | ||||||
5,423 | WEC Energy Group, Inc. | 456,183 | ||||||
7,831 | Xcel Energy, Inc. | 447,385 | ||||||
|
|
|||||||
5,802,623 | ||||||||
|
|
|||||||
TOTAL INVESTMENTS – 98.8% | ||||||||
(Cost $25,754,590) | $ | 23,150,402 | ||||||
|
|
|||||||
|
OTHER ASSETS IN EXCESS
OF LIABILITIES – 1.2% |
279,643 | ||||||
|
|
|||||||
NET ASSETS – 100.0% | $ | 23,430,045 | ||||||
|
|
The percentage shown for each investment category reflects the value of investments in that category as a percentage of net assets. | ||
* |
Non-income producing security. | |
(a) |
Exempt from registration under Rule 144A of the Securities Act of 1933. |
| ||
Investment Abbreviations: | ||
NVDR |
—Non-Voting Depository Receipt | |
PLC |
—Public Limited Company | |
REIT |
—Real Estate Investment Trust | |
|
32 | The accompanying notes are an integral part of these financial statements. |
GOLDMAN SACHS FUTURE TECH LEADERS EQUITY ETF
Schedule of Investments
August 31, 2023
Shares | Description | Value |
||||||
Common Stocks – 98.6% | ||||||||
Communication Services – 12.3% | ||||||||
113,804 | Cellnex Telecom SA (Spain)*(a) | $ | 4,360,157 | |||||
30,355 | Electronic Arts, Inc. | 3,641,993 | ||||||
80,551 | Match Group, Inc.* | 3,775,425 | ||||||
21,972 | NAVER Corp. (South Korea) | 3,565,723 | ||||||
292,774 | NetEase, Inc. (China) | 6,115,520 | ||||||
39,296 | Sea Ltd. ADR (Singapore)* | 1,478,709 | ||||||
316,886 | Snap, Inc., Class A* | 3,279,770 | ||||||
66,994 | Trade Desk, Inc. (The), Class A* | 5,361,530 | ||||||
|
|
|||||||
31,578,827 | ||||||||
|
|
|||||||
Consumer Discretionary – 5.4% | ||||||||
30,503 | Etsy, Inc.* | 2,244,106 | ||||||
4,785 | MercadoLibre, Inc. (Brazil)* | 6,566,742 | ||||||
60,713 | Mobileye Global, Inc., Class A (Israel)* | 2,155,919 | ||||||
72,680 | Trip.com Group Ltd. (China)* | 2,867,624 | ||||||
|
|
|||||||
13,834,391 | ||||||||
|
|
|||||||
Financials – 3.8% | ||||||||
3,232 | Adyen NV (Netherlands)*(a) | 2,709,816 | ||||||
81,612 | Fidelity National Information Services, Inc. | 4,558,846 | ||||||
15,868 | Jack Henry & Associates, Inc. | 2,487,785 | ||||||
|
|
|||||||
9,756,447 | ||||||||
|
|
|||||||
Health Care – 1.0% | ||||||||
23,488 | Hoya Corp. (Japan) | 2,606,372 | ||||||
|
|
|||||||
Industrials – 3.5% | ||||||||
29,052 | Booz Allen Hamilton Holding Corp. | 3,291,882 | ||||||
154,057 | Daifuku Co. Ltd. (Japan) | 2,850,242 | ||||||
51,885 | NIDEC Corp. (Japan) | 2,719,967 | ||||||
|
|
|||||||
8,862,091 | ||||||||
|
|
|||||||
Information Technology – 71.2% | ||||||||
125,052 | AppLovin Corp., Class A* | 5,404,747 | ||||||
23,496 | Arista Networks, Inc.* | 4,587,124 | ||||||
7,489 | ASM International NV (Netherlands) | 3,618,670 | ||||||
15,103 | Atlassian Corp., Class A* | 3,081,918 | ||||||
23,923 | Cadence Design Systems, Inc.* | 5,752,046 | ||||||
12,665 | CDW Corp. | 2,674,215 | ||||||
400,057 | Chroma ATE, Inc. (Taiwan) | 3,517,371 | ||||||
69,224 | Datadog, Inc., Class A* | 6,678,732 | ||||||
483,284 | Delta Electronics, Inc. (Taiwan) | 5,250,695 | ||||||
33,547 | DocuSign, Inc.* | 1,687,414 | ||||||
123,299 | Dynatrace, Inc.* | 5,943,012 | ||||||
16,435 | Enphase Energy, Inc.* | 2,079,521 | ||||||
45,277 | Entegris, Inc. | 4,585,202 | ||||||
50,537 | Hamamatsu Photonics KK (Japan) | 2,341,743 | ||||||
12,905 | HubSpot, Inc.* | 7,052,841 | ||||||
334,740 | Hundsun Technologies, Inc., Class A (China) | 1,655,649 | ||||||
105,255 | Infineon Technologies AG (Germany) | 3,771,586 | ||||||
182,482 | Jentech Precision Industrial Co. Ltd. (Taiwan) | 3,707,342 | ||||||
19,226 | Keysight Technologies, Inc.* | 2,562,826 | ||||||
2,251,304 | Kingdee International Software Group Co. Ltd. (China)* | 3,479,556 | ||||||
|
|
|||||||
Common Stocks – (continued) | ||||||||
Information Technology – (continued) | ||||||||
15,734 | KLA Corp. | 7,896,423 | ||||||
426,506 | Luxshare Precision Industry Co. Ltd., Class A (China) | 1,933,736 | ||||||
129,986 | Marvell Technology, Inc. | 7,571,684 | ||||||
162,356 | MediaTek, Inc. (Taiwan) | 3,594,146 | ||||||
66,925 | Micron Technology, Inc. | 4,680,734 | ||||||
46,042 | MKS Instruments, Inc. | 4,614,790 | ||||||
6,958 | MongoDB, Inc.* | 2,653,085 | ||||||
25,127 | Motorola Solutions, Inc. | 7,125,263 | ||||||
47,703 | Murata Manufacturing Co. Ltd. (Japan) | 2,681,932 | ||||||
18,665 | Palo Alto Networks, Inc.* | 4,541,194 | ||||||
40,870 | Procore Technologies, Inc.* | 2,760,768 | ||||||
56,633 | RingCentral, Inc., Class A* | 1,751,659 | ||||||
173,362 | Sangfor Technologies, Inc., Class A (China)* | 2,598,108 | ||||||
6,976 | ServiceNow, Inc.* | 4,107,678 | ||||||
242,868 | Silergy Corp. (China) | 2,188,721 | ||||||
22,091 | Snowflake, Inc., Class A* | 3,464,973 | ||||||
26,265 | Tokyo Electron Ltd. (Japan) | 3,892,347 | ||||||
282,148 | UiPath, Inc., Class A* | 4,460,760 | ||||||
528,806 | Unimicron Technology Corp. (Taiwan) | 3,080,198 | ||||||
4,170,932 | United Microelectronics Corp. (Taiwan) | 5,959,129 | ||||||
948,786 | Venustech Group, Inc., Class A (China) | 3,803,747 | ||||||
314,073 | Viavi Solutions, Inc.* | 3,282,063 | ||||||
34,163 | Workday, Inc., Class A* | 8,352,854 | ||||||
36,107 | Zscaler, Inc.* | 5,634,497 | ||||||
|
|
|||||||
182,062,699 | ||||||||
|
|
|||||||
Real Estate – 1.4% | ||||||||
16,259 | SBA Communications Corp. REIT | 3,650,633 | ||||||
|
|
|||||||
TOTAL INVESTMENTS – 98.6% | ||||||||
(Cost $277,361,998) | $ | 252,351,460 | ||||||
|
|
|||||||
|
OTHER ASSETS IN EXCESS
OF LIABILITIES – 1.4% |
3,543,914 | ||||||
|
|
|||||||
NET ASSETS – 100.0% | $ | 255,895,374 | ||||||
|
|
The percentage shown for each investment category reflects the value of investments in that category as a percentage of net assets. | ||
* |
Non-income producing security. | |
(a) |
Exempt from registration under Rule 144A of the Securities Act of 1933. |
| ||
Investment Abbreviations: | ||
ADR |
—American Depositary Receipt | |
REIT |
—Real Estate Investment Trust | |
|
The accompanying notes are an integral part of these financial statements. | 33 |
GOLDMAN SACHS FUTURE ETFS
Statements of Assets and Liabilities
August 31, 2023
Future Consumer Equity ETF |
Future Health Care Equity ETF |
Future Planet Equity ETF |
Future Real Estate and Infrastructure Equity ETF |
|||||||||||||||
Assets: |
| |||||||||||||||||
Investments at value (cost $161,557,638, $109,924,337, $171,789,377 and $25,754,590, respectively)(a) |
$ | 155,261,344 | $ | 109,941,937 | $ | 137,647,880 | $ | 23,150,402 | ||||||||||
Investments in affiliated securities lending reinvestment vehicle, at value which equals cost |
747,637 | — | 1,110,381 | — | ||||||||||||||
Cash |
1,172,281 | 1,616,237 | 4,680,609 | 257,425 | ||||||||||||||
Foreign currency, at value (cost $885,140, $277,807, $— and $102, respectively) |
874,656 | 277,467 | — | 102 | ||||||||||||||
Receivables: |
||||||||||||||||||
Dividends |
53,393 | 70,862 | 114,450 | 28,675 | ||||||||||||||
Foreign tax reclaims |
18,576 | 4,596 | 129,670 | 8,398 | ||||||||||||||
Securities lending income |
1,835 | 185 | 3,754 | — | ||||||||||||||
Total assets | 158,129,722 | 111,911,284 | 143,686,744 | 23,445,002 | ||||||||||||||
Liabilities: | ||||||||||||||||||
Payables: |
||||||||||||||||||
Investments purchased |
1,073,501 | — | — | — | ||||||||||||||
Upon return of securities loaned |
747,637 | — | 1,110,381 | — | ||||||||||||||
Management fees |
100,054 | 70,639 | 91,931 | 14,957 | ||||||||||||||
Foreign bank overdraft (cost $—, $—, $14,511 and $—, respectively) |
— | — | 14,539 | — | ||||||||||||||
Total liabilities | 1,921,192 | 70,639 | 1,216,851 | 14,957 | ||||||||||||||
Net Assets: | ||||||||||||||||||
Paid-in capital |
170,684,842 | 122,408,232 | 183,841,499 | 27,868,983 | ||||||||||||||
Total distributable loss |
(14,476,312 | ) | (10,567,587 | ) | (41,371,606 | ) | (4,438,938 | ) | ||||||||||
NET ASSETS | $ | 156,208,530 | $ | 111,840,645 | $ | 142,469,893 | $ | 23,430,045 | ||||||||||
SHARES ISSUED AND OUTSTANDING | ||||||||||||||||||
Shares outstanding no par value (unlimited shares authorized): |
5,750,000 | 3,450,000 | 4,725,000 | 725,000 | ||||||||||||||
Net asset value per share: |
$27.17 | $32.42 | $30.15 | $32.32 |
(a) | Includes loaned securities having a market value of $710,435, $—, $1,039,913 and $— for Future Consumer Equity ETF, Future Health Care Equity ETF, Future Planet Equity ETF and Future Real Estate and Infrastructure Equity ETF, respectively. |
34 | The accompanying notes are an integral part of these financial statements. |
GOLDMAN SACHS FUTURE ETFS
Statements of Assets and Liabilities (continued)
August 31, 2023
Future Tech Leaders Equity ETF |
||||||
Assets: | ||||||
Investments at value (cost $277,361,998) |
$ | 252,351,460 | ||||
Cash |
3,562,663 | |||||
Receivables: |
||||||
Dividends |
110,427 | |||||
Foreign tax reclaims |
32,619 | |||||
Total assets | 256,057,169 | |||||
Liabilities: | ||||||
Payables: |
||||||
Management fees |
161,598 | |||||
Foreign bank overdraft (cost $200) |
197 | |||||
Total liabilities | 161,795 | |||||
Net Assets: | ||||||
Paid-in capital |
378,032,778 | |||||
Total distributable loss |
(122,137,404 | ) | ||||
NET ASSETS | $ | 255,895,374 | ||||
SHARES ISSUED AND OUTSTANDING | ||||||
Shares outstanding no par value (unlimited shares authorized): |
10,200,000 | |||||
Net asset value per share: |
$25.09 |
The accompanying notes are an integral part of these financial statements. | 35 |
GOLDMAN SACHS FUTURE ETFS
Statements of Operations
For the Fiscal Year Ended August 31, 2023
Future Consumer Equity ETF |
Future Health Care Equity ETF |
Future Planet Equity ETF |
Future Real Estate and Infrastructure Equity ETF |
|||||||||||||||
Investment income: |
| |||||||||||||||||
Dividends — unaffiliated issuers (net of foreign withholding taxes of $112,131, $13,160, $326,249 and $90,208, respectively) |
$ | 1,073,419 | $ | 655,503 | $ | 2,722,301 | $ | 591,426 | ||||||||||
Non cash dividend income |
146,738 | — | — | — | ||||||||||||||
Securities lending income, net of rebates received or paid to borrowers—unaffiliated issuer |
16,163 | 1,646 | 74,601 | 2,262 | ||||||||||||||
Total investment income | 1,236,320 | 657,149 | 2,796,902 | 593,688 | ||||||||||||||
Expenses: | ||||||||||||||||||
Management fees |
840,972 | 775,714 | 1,186,549 | 149,454 | ||||||||||||||
Trustee fees |
27,376 | 27,680 | 29,190 | 25,681 | ||||||||||||||
Total expenses | 868,348 | 803,394 | 1,215,739 | 175,135 | ||||||||||||||
NET INVESTMENT INCOME (LOSS) | 367,972 | (146,245 | ) | 1,581,163 | 418,553 | |||||||||||||
Realized and unrealized gain (loss): |
| |||||||||||||||||
Net realized gain (loss) from: |
||||||||||||||||||
Investments — unaffiliated issuers |
(5,093,639 | ) | (7,593,401 | ) | (8,043,524 | ) | (1,368,943 | ) | ||||||||||
In-kind redemptions |
1,128,072 | 1,237,202 | 2,138,533 | 3,714 | ||||||||||||||
Foreign currency transactions |
(7,327 | ) | (1,997 | ) | (36,864 | ) | 5,823 | |||||||||||
Net change in unrealized gain (loss) on: |
||||||||||||||||||
Investments — unaffiliated issuers |
12,121,334 | 14,700,063 | 5,734,563 | 36,048 | ||||||||||||||
Foreign currency translations |
(8,491 | ) | (186 | ) | 4,484 | 3,511 | ||||||||||||
Net realized and unrealized gain (loss) | 8,139,949 | 8,341,681 | (202,808 | ) | (1,319,847 | ) | ||||||||||||
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS | $ | 8,507,921 | $ | 8,195,436 | $ | 1,378,355 | $ | (901,294 | ) |
36 | The accompanying notes are an integral part of these financial statements. |
GOLDMAN SACHS FUTURE ETFS
Statements of Operations (continued)
For the Fiscal Year Ended August 31, 2023
Future Tech Leaders Equity ETF |
||||||
Investment income: | ||||||
Dividends — unaffiliated issuers (net of foreign withholding taxes of $348,407) |
$ | 2,257,357 | ||||
Securities lending income, net of rebates received or paid to borrowers — unaffiliated issuer |
366 | |||||
Total investment income | 2,257,723 | |||||
Expenses: | ||||||
Management fees |
1,761,177 | |||||
Trustee fees |
30,796 | |||||
Total expenses | 1,791,973 | |||||
NET INVESTMENT INCOME | 465,750 | |||||
Realized and unrealized gain (loss): |
| |||||
Net realized gain (loss) from: |
||||||
Investments — unaffiliated issuers |
(64,061,816 | ) | ||||
In-kind redemptions |
1,783,598 | |||||
Foreign currency transactions |
(36,103 | ) | ||||
Net change in unrealized gain (loss) on: |
||||||
Investments — unaffiliated issuers |
74,034,201 | |||||
Foreign currency translations |
(227 | ) | ||||
Net realized and unrealized gain | 11,719,653 | |||||
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS | $ | 12,185,403 |
The accompanying notes are an integral part of these financial statements. | 37 |
GOLDMAN SACHS FUTURE ETFS
Statements of Changes in Net Assets
Future Consumer Equity ETF | Future Health Care Equity ETF | |||||||||||||||||||||
For the Fiscal Year Ended August 31, 2023 |
For the
Period November 9, 2021* to August 31, 2022 |
For the Fiscal Year Ended August 31, 2023 |
For the
Period November 9, 2021* to August 31, 2022 |
|||||||||||||||||||
From operations: |
|
|||||||||||||||||||||
Net investment income (loss) |
$ | 367,972 | $ | 198,811 | $ | (146,245 | ) | $ | (162,050 | ) | ||||||||||||
Net realized loss |
(3,972,894 | ) | (4,106,857 | ) | (6,358,196 | ) | (2,416,068 | ) | ||||||||||||||
Net change in unrealized gain (loss) |
12,112,843 | (18,419,972 | ) | 14,699,877 | (14,682,986 | ) | ||||||||||||||||
Net increase (decrease) in net assets resulting from operations | 8,507,921 | (22,328,018 | ) | 8,195,436 | (17,261,104 | ) | ||||||||||||||||
Distributions to shareholders: | ||||||||||||||||||||||
From distributable earnings |
— | (202,678 | ) | (102 | ) | — | ||||||||||||||||
From return of capital |
— | (74,347 | ) | — | — | |||||||||||||||||
Total distributions to shareholders | — | (277,025 | ) | (102 | ) | — | ||||||||||||||||
From share transactions: |
|
|||||||||||||||||||||
Proceeds from sales of shares |
61,459,027 | 120,508,199 | 12,109,470 | 129,642,436 | ||||||||||||||||||
Cost of shares redeemed |
(2,758,951 | ) | (8,902,623 | ) | (10,245,168 | ) | (10,600,323 | ) | ||||||||||||||
Net increase in net assets resulting from share transactions | 58,700,076 | 111,605,576 | 1,864,302 | 119,042,113 | ||||||||||||||||||
TOTAL INCREASE | 67,207,997 | 89,000,533 | 10,059,636 | 101,781,009 | ||||||||||||||||||
Net assets: |
|
|||||||||||||||||||||
Beginning of period |
$ | 89,000,533 | $ | — | $ | 101,781,009 | $ | — | ||||||||||||||
End of period |
$ | 156,208,530 | $ | 89,000,533 | $ | 111,840,645 | $ | 101,781,009 |
* | Commencement of operations. |
38 | The accompanying notes are an integral part of these financial statements. |
GOLDMAN SACHS FUTURE ETFS
Statements of Changes in Net Assets (continued)
Future Planet Equity ETF | Future Real Estate and Infrastructure Equity ETF |
|||||||||||||||||||||
For the Fiscal Year Ended August 31, 2023 |
For the Fiscal Year Ended August 31, 2022 |
For the Fiscal Year Ended August 31, 2023 |
For the
Period November 9, 2021* to August 31, 2022 |
|||||||||||||||||||
From operations: |
| |||||||||||||||||||||
Net investment income |
$ | 1,581,163 | $ | 1,061,992 | $ | 418,553 | $ | 276,661 | ||||||||||||||
Net realized loss |
(5,941,855 | ) | (2,878,218 | ) | (1,359,406 | ) | (547,285 | ) | ||||||||||||||
Net change in unrealized gain (loss) |
5,739,047 | (42,812,576 | ) | 39,559 | (2,643,761 | ) | ||||||||||||||||
Net increase (decrease) in net assets resulting from operations | 1,378,355 | (44,628,802 | ) | (901,294 | ) | (2,914,385 | ) | |||||||||||||||
Distributions to shareholders: | ||||||||||||||||||||||
From distributable earnings |
(617,909 | ) | (755,496 | ) | (445,287 | ) | (211,263 | ) | ||||||||||||||
From share transactions: |
| |||||||||||||||||||||
Proceeds from sales of shares |
7,651,164 | 191,443,464 | 1,628,238 | 27,100,977 | ||||||||||||||||||
Cost of shares redeemed |
(39,765,858 | ) | (32,339,953 | ) | (826,941 | ) | — | |||||||||||||||
Net increase (decrease) in net assets resulting from share transactions | (32,114,694 | ) | 159,103,511 | 801,297 | 27,100,977 | |||||||||||||||||
TOTAL INCREASE (DECREASE) | (31,354,248 | ) | 113,719,213 | (545,284 | ) | 23,975,329 | ||||||||||||||||
Net assets: |
| |||||||||||||||||||||
Beginning of period |
$ | 173,824,141 | $ | 60,104,928 | $ | 23,975,329 | $ | — | ||||||||||||||
End of period |
$ | 142,469,893 | $ | 173,824,141 | $ | 23,430,045 | $ | 23,975,329 |
* | Commencement of operations. |
The accompanying notes are an integral part of these financial statements. | 39 |
GOLDMAN SACHS FUTURE ETFS
Statements of Changes in Net Assets (continued)
Future Tech Leaders Equity ETF | ||||||||||||||
For the Fiscal Year Ended August 31, 2023 |
For the
Period September 14, 2021* to August 31, 2022 |
|||||||||||||
From operations: |
| |||||||||||||
Net investment income |
$ | 465,750 | $ | 74,214 | ||||||||||
Net realized loss |
(62,314,321 | ) | (38,383,334 | ) | ||||||||||
Net change in unrealized gain (loss) |
74,033,974 | (99,046,678 | ) | |||||||||||
Net increase (decrease) in net assets resulting from operations | 12,185,403 | (137,355,798 | ) | |||||||||||
Distributions to shareholders: | ||||||||||||||
From distributable earnings |
(48,204 | ) | (9,965 | ) | ||||||||||
From share transactions: | ||||||||||||||
Proceeds from sales of shares |
16,960,331 | 422,677,334 | ||||||||||||
Cost of shares redeemed |
(15,609,588 | ) | (42,904,139 | ) | ||||||||||
Net increase in net assets resulting from share transactions | 1,350,743 | 379,773,195 | ||||||||||||
TOTAL INCREASE | 13,487,942 | 242,407,432 | ||||||||||||
Net assets: |
| |||||||||||||
Beginning of period |
$ | 242,407,432 | $ | — | ||||||||||
End of period |
$ | 255,895,374 | $ | 242,407,432 |
* | Commencement of operations. |
40 | The accompanying notes are an integral part of these financial statements. |
GOLDMAN SACHS FUTURE CONSUMER EQUITY ETF
Selected Data for a Share Outstanding Throughout Each Period
* | Commencement of operations. |
(a) | Calculated based on the average shares outstanding methodology. |
(b) | Assumes investment at the net asset value at the beginning of the period, reinvestment of all distributions and a complete sale of the investment at the net asset value at the end of the period. Returns do not reflect the impact of taxes to shareholders relating to Fund distributions or the sale of Fund shares. Total returns for periods less than one full year are not annualized. |
(c) | Annualized. |
(d) | The Fund’s portfolio turnover rate is calculated in accordance with regulatory requirements and excludes portfolio securities received or delivered as a result of in-kind transactions and short-term transactions. If such transactions were included, the Fund’s portfolio turnover rate may be higher. |
The accompanying notes are an integral part of these financial statements. | 41 |
GOLDMAN SACHS FUTURE HEALTH CARE EQUITY ETF
Financial Highlights (continued)
Selected Data for a Share Outstanding Throughout Each Period
* | Commencement of operations. |
(a) | Calculated based on the average shares outstanding methodology. |
(b) | Amount is less than $0.005 per share. |
(c) | Assumes investment at the net asset value at the beginning of the period, reinvestment of all distributions and a complete sale of the investment at the net asset value at the end of the period. Returns do not reflect the impact of taxes to shareholders relating to Fund distributions or the sale of Fund shares. Total returns for periods less than one full year are not annualized. |
(d) | Annualized. |
(e) | The Fund’s portfolio turnover rate is calculated in accordance with regulatory requirements and excludes portfolio securities received or delivered as a result of in-kind transactions and short-term transactions. If such transactions were included, the Fund’s portfolio turnover rate may be higher. |
42 | The accompanying notes are an integral part of these financial statements. |
GOLDMAN SACHS FUTURE PLANET EQUITY ETF
Financial Highlights (continued)
Selected Data for a Share Outstanding Throughout Each Period
* | Commencement of operations. |
(a) | Calculated based on the average shares outstanding methodology. |
(b) | Assumes investment at the net asset value at the beginning of the period, reinvestment of all distributions and a complete sale of the investment at the net asset value at the end of the period. Returns do not reflect the impact of taxes to shareholders relating to Fund distributions or the sale of Fund shares. Total returns for periods less than one full year are not annualized. |
(c) | Annualized. |
(d) | The Fund’s portfolio turnover rate is calculated in accordance with regulatory requirements and excludes portfolio securities received or delivered as a result of in-kind transactions and short-term transactions. If such transactions were included, the Fund’s portfolio turnover rate may be higher. |
The accompanying notes are an integral part of these financial statements. | 43 |
GOLDMAN SACHS FUTURE REAL ESTATE AND INFRASTRUCTURE EQUITY ETF
Financial Highlights (continued)
Selected Data for a Share Outstanding Throughout Each Period
* | Commencement of operations. |
(a) | Calculated based on the average shares outstanding methodology. |
(b) | Assumes investment at the net asset value at the beginning of the period, reinvestment of all distributions and a complete sale of the investment at the net asset value at the end of the period. Returns do not reflect the impact of taxes to shareholders relating to Fund distributions or the sale of Fund shares. Total returns for periods less than one full year are not annualized. |
(c) | Annualized. |
(d) | The Fund’s portfolio turnover rate is calculated in accordance with regulatory requirements and excludes portfolio securities received or delivered as a result of in-kind transactions and short-term transactions. If such transactions were included, the Fund’s portfolio turnover rate may be higher. |
44 | The accompanying notes are an integral part of these financial statements. |
GOLDMAN SACHS FUTURE TECH LEADERS EQUITY ETF
Financial Highlights (continued)
Selected Data for a Share Outstanding Throughout Each Period
* | Commencement of operations. |
(a) | Calculated based on the average shares outstanding methodology. |
(b) | Amount is less than $0.005 per share. |
(c) | Assumes investment at the net asset value at the beginning of the period, reinvestment of all distributions and a complete sale of the investment at the net asset value at the end of the period. Returns do not reflect the impact of taxes to shareholders relating to Fund distributions or the sale of Fund shares. Total returns for periods less than one full year are not annualized. |
(d) | Annualized. |
(e) | The Fund’s portfolio turnover rate is calculated in accordance with regulatory requirements and excludes portfolio securities received or delivered as a result of in-kind transactions and short-term transactions. If such transactions were included, the Fund’s portfolio turnover rate may be higher. |
The accompanying notes are an integral part of these financial statements. | 45 |
GOLDMAN SACHS FUTURE ETFS
August 31, 2023
1. ORGANIZATION |
Goldman Sachs ETF Trust (the “Trust”) is an open-end management investment company, registered under the Investment Company Act of 1940, as amended (the “Act”), consisting of multiple series. The Trust was organized as a Delaware statutory trust on December 16, 2009. The following table lists those series of the Trust that are included in this report (collectively, the “Funds” or individually a “Fund”) along with their respective diversification status under the Act:
Fund | Diversification Classification | |||
Goldman Sachs Future Consumer Equity ETF |
Non-Diversified | |||
Goldman Sachs Future Health Care Equity ETF |
Non-Diversified | |||
Goldman Sachs Future Planet Equity ETF |
Non-Diversified | |||
Goldman Sachs Future Real Estate and Infrastructure Equity ETF |
Non-Diversified | |||
Goldman Sachs Future Tech Leaders Equity ETF |
Non-Diversified |
The investment objective of each Fund (except the Goldman Sachs Future Planet Equity ETF) is to seek long-term growth of capital. The investment objective of the Goldman Sachs Future Planet Equity ETF is to seek long-term capital appreciation.
Goldman Sachs Asset Management, L.P. (“GSAM”), an affiliate of Goldman Sachs & Co. LLC (“Goldman Sachs”), serves as investment adviser to the Funds pursuant to a management agreement (the “Agreement”) with the Trust. Each Fund is an exchange-traded fund (“ETF”). Shares of the Funds are listed and traded on the NYSE Arca, Inc. (“NYSE Arca”). Market prices for the Funds’ shares may be different from their net asset value (“NAV”). The Funds issue and redeem shares at their respective NAV only in blocks of a specified number of shares, or multiples thereof, referred to as “Creation Units”. Creation Units are issued and redeemed generally for a designated portfolio of securities (including any portion of such securities for which cash may be substituted) and a specified amount of cash. Shares generally trade in the secondary market in quantities less than a Creation Unit at market prices that change throughout the day. Only those that have entered into an authorized participant agreement with ALPS Distributors, Inc. (the “Distributor”) may do business directly with the Funds.
2. SIGNIFICANT ACCOUNTING POLICIES |
The financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and require management to make estimates and assumptions that may affect the reported amounts and disclosures. Actual results may differ from those estimates and assumptions. Each Fund is an investment company under GAAP and follows the accounting and reporting guidance applicable to investment companies.
A. Investment Valuation — The Funds’ valuation policy is to value investments at fair value.
B. Investment Income and Investments — Investment income includes interest income, dividend income, and securities lending income, if any. Interest income is accrued daily and adjusted for amortization of premiums and accretion of discounts. Dividend income is recognized on ex-dividend date or, for certain foreign securities, as soon as such information is obtained subsequent to the ex-dividend date. Non-cash dividends, if any, are recorded at the fair market value of the securities received. Investment transactions are reflected on trade date. Realized gains and losses are calculated using identified cost. Investment transactions are recorded on the following business day for daily NAV calculations. Investment income is recorded net of any foreign withholding taxes, less any amounts reclaimable. The Funds may file withholding tax reclaims in certain jurisdictions to recover a portion of amounts previously withheld. These reclaims, if any, are recorded when the amount is known and there are no significant uncertainties on collectability. Such amounts recovered, if any, are reflected as other income in the Statements of Operations. Any foreign capital gains tax is accrued daily based upon net unrealized gains, and is payable upon sale of such investments. Distributions received from the Funds’ investments in U.S. real estate investment trusts (“REITs”) may be characterized as ordinary income, net capital gain and/or a return of capital. A return of capital is recorded by the Funds as a reduction to the cost basis of the REIT.
46
GOLDMAN SACHS FUTURE ETFS
2. SIGNIFICANT ACCOUNTING POLICIES (continued) |
C. Expenses — Expenses incurred directly by a Fund are charged to the Fund, and certain expenses incurred by the Trust are allocated across the applicable Funds on a straight-line and/or pro-rata basis, depending upon the nature of the expenses, and are accrued daily.
D. Federal Taxes and Distributions to Shareholders — It is each Fund’s policy to comply with the requirements of the Internal Revenue Code of 1986, as amended (the “Code”), applicable to regulated investment companies and to distribute each year substantially all of its investment company taxable income and capital gains to its shareholders. Accordingly, each Fund is not required to make any provisions for the payment of federal income tax. Distributions to shareholders are recorded on the ex- dividend date. For Goldman Sachs Future Consumer Equity ETF, Goldman Sachs Future Health Care Equity ETF, Goldman Sachs Future Planet Equity ETF and Goldman Sachs Future Tech Leaders Equity ETF, income distributions, if any, are declared and paid annually. For Goldman Sachs Future Real Estate and Infrastructure Equity ETF income distributions, if any, are declared and paid semi-annually. Capital gains distributions, if any, are declared and paid annually.
Net capital losses, if any, are carried forward to future fiscal years and may be used to the extent allowed by the Code to offset any future capital gains. Losses that are carried forward will retain their character as either short-term or long-term capital losses. Utilization of capital loss carryforwards will reduce the requirement of future capital gains distributions.
The characterization of distributions to shareholders for financial reporting purposes is determined in accordance with federal income tax rules, which may differ from GAAP. The source of each Fund’s distributions may be shown in the accompanying financial statements as either from distributable earnings or capital. Certain components of the Funds’ net assets on the Statements of Assets and Liabilities reflect permanent GAAP/tax differences based on the appropriate tax character.
E. Foreign Currency Translation — The accounting records and reporting currency of a Fund are maintained in U.S. dollars. Assets and liabilities denominated in foreign currencies are translated into U.S. dollars using the current exchange rates at the close of each business day. The effect of changes in foreign currency exchange rates on investments is included within net realized and unrealized gain (loss) on investments. Changes in the value of other assets and liabilities as a result of fluctuations in foreign exchange rates are included in the Statements of Operations within net change in unrealized gain (loss) on foreign currency translation. Transactions denominated in foreign currencies are translated into U.S. dollars on the date the transaction occurred, the effects of which are included within net realized gain (loss) on foreign currency transactions.
3. INVESTMENTS AND FAIR VALUE MEASUREMENTS |
U.S. GAAP defines the fair value of a financial instrument as the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (i.e., the exit price); the Funds’ policy is to use the market approach. GAAP establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The level in the fair value hierarchy within which the fair value measurement in its entirety falls shall be determined based on the lowest level input that is significant to the fair value measurement in its entirety. The levels used for classifying investments are not necessarily an indication of the risk associated with investing in these investments. The three levels of the fair value hierarchy are described below:
Level 1 — Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities;
Level 2 — Quoted prices in markets that are not active or financial instruments for which significant inputs are observable (including, but not limited to, quoted prices for similar investments, interest rates, foreign exchange rates, volatility and credit spreads), either directly or indirectly;
Level 3 — Prices or valuations that require significant unobservable inputs (including GSAM’s assumptions in determining fair value measurement).
The Board of Trustees (“Trustees”) has approved Valuation Procedures that govern the valuation of the portfolio investments held by the Funds, including investments for which market quotations are not readily available. With respect to the Funds’
47
GOLDMAN SACHS FUTURE ETFS
Notes to Financial Statements (continued)
August 31, 2023
3. INVESTMENTS AND FAIR VALUE MEASUREMENTS (continued) |
investments that do not have readily available market quotations, the Trustees have designated the Adviser as the valuation designee to perform fair valuations pursuant to Rule 2a-5 under the Investment Company Act of 1940 (the “Valuation Designee”). GSAM has day-to-day responsibility for implementing and maintaining internal controls and procedures related to the valuation of the Funds’ investments. To assess the continuing appropriateness of pricing sources and methodologies, GSAM regularly performs price verification procedures and issues challenges as necessary to third party pricing vendors or brokers, and any differences are reviewed in accordance with the Valuation Procedures.
A. Level 1 and Level 2 Fair Value Investments — The valuation techniques and significant inputs used in determining the fair values for investments classified as Level 1 and Level 2 are as follows:
Equity Securities — Equity securities traded on a United States (“U.S.”) securities exchange or the NASDAQ system, or those located on certain foreign exchanges, including but not limited to the Americas, are valued daily at their last sale price or official closing price on the principal exchange or system on which they are traded. If there is no sale or official closing price or such price is believed by GSAM to not represent fair value, equity securities will be valued at the valid closing bid price for long positions and at the valid closing ask price for short positions (i.e. where there is sufficient volume, during normal exchange trading hours). If no valid bid/ask price is available, the equity security will be valued pursuant to the Valuation Procedures and consistent with applicable regulatory guidance. To the extent these investments are actively traded, they are classified as Level 1 of the fair value hierarchy, otherwise they are generally classified as Level 2. Certain equity securities containing unique attributes may be classified as Level 2.
Unlisted equity securities for which market quotations are available are valued at the last sale price on the valuation date, or if no sale occurs, at the last bid price for long positions or the last ask price for short positions, and are generally classified as Level 2.
Money Market Funds — Investments in the Goldman Sachs Financial Square Government Fund (“Underlying Money Market Fund”) are valued at the NAV per share of the Institutional Share class on the day of valuation. These investments are generally classified as Level 1 of the fair value hierarchy. For information regarding the Underlying Money Market Fund’s accounting policies and investment holdings, please see the Underlying Money Market Fund’s shareholder report.
B. Level 3 Fair Value Investments — To the extent that significant inputs to valuation models and other alternative pricing sources are unobservable, or if quotations are not readily available, or if GSAM believes that such quotations do not accurately reflect fair value, the fair value of a Fund’s investments may be determined under the Valuation Procedures. GSAM, consistent with its procedures and applicable regulatory guidance, may make an adjustment to the most recent valuation prices of either domestic or foreign securities in light of significant events to reflect what it believes to be the fair value of the securities at the time of determining a Fund’s NAV. To the extent investments are valued using single source broker quotations obtained directly from the broker or passed through from third party pricing vendors, such investments are classified as Level 3 investments.
C. Fair Value Hierarchy — The following is a summary of the Funds’ investments classified in the fair value hierarchy as of August 31, 2023:
FUTURE CONSUMER EQUITY ETF |
| |||||||||||
Investment Type | Level 1 | Level 2 | Level 3 | |||||||||
Assets | ||||||||||||
Common Stock and/or Other Equity Investments(a) |
||||||||||||
Asia |
$ | 26,164,484 | $ | — | $ | — | ||||||
Europe |
26,136,745 | — | — | |||||||||
North America |
99,112,067 | — | — | |||||||||
South America |
3,848,048 | — | — | |||||||||
Securities Lending Reinvestment Vehicle |
747,637 | — | — | |||||||||
Total | $ | 156,008,981 | $ | — | $ | — |
(a) | Amounts are disclosed by continent to highlight the impact of time zone differences between local market close and the calculation of NAV. Security valuations are based on the principal exchange or system on which they are traded, which may differ from country of domicile noted in table. The Fund utilizes fair value model prices provided by an independent fair value service for international equities, resulting in a Level 2 classification. |
48
GOLDMAN SACHS FUTURE ETFS
3. INVESTMENTS AND FAIR VALUE MEASUREMENTS (continued) |
FUTURE HEALTH CARE EQUITY ETF |
| |||||||||||
Investment Type | Level 1 | Level 2 | Level 3 | |||||||||
Assets | ||||||||||||
Common Stock and/or Other Equity Investments(a) |
||||||||||||
Asia |
$ | 6,716,910 | $ | — | $ | — | ||||||
Europe |
11,776,379 | — | — | |||||||||
North America |
91,448,648 | — | — | |||||||||
Total | $ | 109,941,937 | $ | — | $ | — | ||||||
FUTURE PLANET EQUITY ETF |
| |||||||||||
Investment Type | Level 1 | Level 2 | Level 3 | |||||||||
Assets | ||||||||||||
Common Stock and/or Other Equity Investments(a) |
||||||||||||
Asia |
$ | 23,437,356 | $ | — | $ | — | ||||||
Europe |
49,215,996 | — | — | |||||||||
North America |
64,929,464 | — | — | |||||||||
Oceania |
65,064 | — | — | |||||||||
Securities Lending Reinvestment Vehicle |
1,110,381 | — | — | |||||||||
Total | $ | 138,758,261 | $ | — | $ | — | ||||||
FUTURE REAL ESTATE AND INFRASTRUCTURE EQUITY ETF |
| |||||||||||
Investment Type | Level 1 | Level 2 | Level 3 | |||||||||
Assets | ||||||||||||
Common Stock and/or Other Equity Investments(a) |
||||||||||||
Asia |
$ | 671,094 | $ | 300,103 | $ | — | ||||||
Europe |
5,516,317 | — | — | |||||||||
North America |
15,302,550 | — | — | |||||||||
Oceania |
1,360,338 | — | — | |||||||||
Total | $ | 22,850,299 | $ | 300,103 | $ | — | ||||||
FUTURE TECH LEADERS EQUITY ETF |
| |||||||||||
Investment Type | Level 1 | Level 2 | Level 3 | |||||||||
Assets | ||||||||||||
Common Stock and/or Other Equity Investments(a) |
||||||||||||
Asia |
$ | 74,044,496 | $ | — | $ | — | ||||||
Europe |
14,460,229 | — | — | |||||||||
North America |
157,279,993 | — | — | |||||||||
South America |
6,566,742 | — | — | |||||||||
Total | $ | 252,351,460 | $ | — | $ | — |
(a) | Amounts are disclosed by continent to highlight the impact of time zone differences between local market close and the calculation of NAV. Security valuations are based on the principal exchange or system on which they are traded, which may differ from country of domicile noted in table. The Fund utilizes fair value model prices provided by an independent fair value service for international equities, resulting in a Level 2 classification. |
For further information regarding security characteristics, see the Schedules of Investments.
49
GOLDMAN SACHS FUTURE ETFS
Notes to Financial Statements (continued)
August 31, 2023
4. AGREEMENTS AND AFFILIATED TRANSACTIONS |
A. Management Agreement — Under the Agreement, GSAM manages the Funds, subject to the general supervision of the Trustees.
As compensation for the services rendered pursuant to the Agreement, the assumption of the expenses related thereto and administration of the Funds’ business affairs, including providing facilities, GSAM is entitled to a management fee, accrued daily and paid monthly, equal to an annual percentage rate of each Fund’s average daily net assets.
The Funds operate under a unitary management fee structure. Under the unitary fee structure, GSAM is responsible for paying substantially all the expenses of each Fund, excluding payments under a Fund’s 12b-1 plan (if any), interest expenses, taxes, acquired fund fees and expenses, brokerage fees, costs of holding shareholder meetings and litigation, indemnification and extraordinary expenses. As the Funds directly pay fees and expenses of the independent Trustees, the management fee collected by GSAM will be reduced by an amount equal to the fees and expenses paid by the Funds to the independent Trustees.
For the fiscal year ended August 31, 2023, contractual and effective net unitary management fee rates with GSAM for each Fund were at the following rates:
Fund |
Unitary Management Fee |
|||||
Future Consumer Equity ETF |
0.75 | % | ||||
Future Health Care Equity ETF |
0.75 | % | ||||
Future Planet Equity ETF |
0.75 | % | ||||
Future Real Estate and Infrastructure Equity ETF |
0.75 | % | ||||
Future Tech Leaders Equity ETF |
0.75 | % |
5. CREATION AND REDEMPTION OF CREATION UNITS |
The Trust issues and redeems shares of the Funds only in Creation Units on a continuous basis through the Distributor, without an initial sales load, at NAV next determined after receipt, on any Business Day (as defined in the Statement of Additional Information), of an order in proper form. Shares of the Funds may only be purchased or redeemed by certain financial institutions (each an “Authorized Participant”). An Authorized Participant is either (1) a “Participating Party” or other participant in the clearing process through the Continuous Net Settlement System of the National Securities Clearing Corporation; or (2) a Depository Trust Company participant; which, in either case, must have executed an agreement with the Distributor. Retail investors will typically not qualify as an Authorized Participant or have the resources to buy and sell whole Creation Units.
Therefore, they will be unable to purchase or redeem the shares directly from the Funds. Rather, most retail investors will purchase shares in the secondary market at market prices with the assistance of a broker and may be subject to customary brokerage commissions or fees. Fixed creation and redemption transaction fees are imposed in connection with creations and redemptions.
50
GOLDMAN SACHS FUTURE ETFS
5. CREATION AND REDEMPTION OF CREATION UNITS (continued) |
Authorized Participants transacting in Creation Units for cash may also pay a variable charge to compensate the relevant fund for certain transaction costs (e.g. taxes on currency or other financial transactions, and brokerage costs) and market impact expenses relating to investing in portfolio securities. Such variable charges, if any, are included in “Proceeds from sale of shares” in the Statements of Changes in Net Assets.
Share activity is as follows:
Goldman Sachs Future Consumer Equity ETF | ||||||||||||||||
|
|
|||||||||||||||
For the Fiscal Year
Ended August 31, 2023 |
For the Period
November 9, 2021* to August 31, 2022 |
|||||||||||||||
|
|
|||||||||||||||
Shares | Dollars | Shares | Dollars | |||||||||||||
|
|
|||||||||||||||
Fund Share Activity | ||||||||||||||||
Shares Sold |
2,350,000 | $ | 61,441,718 | 3,800,001 | $ | 120,483,990 | ||||||||||
Shares Redeemed |
(100,000 | ) | (2,754,101 | ) | (300,001 | ) | (8,899,985 | ) | ||||||||
NET INCREASE IN SHARES |
2,250,000 | $ | 58,687,617 | 3,500,000 | $ | 111,584,005 | ||||||||||
Goldman Sachs Future Health Care Equity ETF | ||||||||||||||||
|
|
|||||||||||||||
For the Fiscal Year
Ended August 31, 2023 |
For the Period
November 9, 2021* to August 31, 2022 |
|||||||||||||||
|
|
|||||||||||||||
Shares | Dollars | Shares | Dollars | |||||||||||||
|
|
|||||||||||||||
Fund Share Activity | ||||||||||||||||
Shares Sold |
375,000 | $ | 12,109,471 | 3,725,001 | $ | 129,641,934 | ||||||||||
Shares Redeemed |
(325,000 | ) | (10,245,168 | ) | (325,001 | ) | (10,600,323 | ) | ||||||||
NET INCREASE IN SHARES |
50,000 | $ | 1,864,303 | 3,400,000 | $ | 119,041,611 | ||||||||||
Goldman Sachs Future Planet Equity ETF | ||||||||||||||||
|
|
|||||||||||||||
For the Fiscal Year
Ended August 31, 2023 |
For the Fiscal Year
Ended August 31, 2022 |
|||||||||||||||
|
|
|||||||||||||||
Shares | Dollars | Shares | Dollars | |||||||||||||
|
|
|||||||||||||||
Fund Share Activity | ||||||||||||||||
Shares Sold |
250,000 | $ | 7,613,215 | 5,375,000 | $ | 191,424,437 | ||||||||||
Shares Redeemed |
(1,275,000 | ) | (39,760,858 | ) | (1,050,000 | ) | (32,343,100 | ) | ||||||||
NET INCREASE/(DECREASE) IN SHARES |
(1,025,000 | ) | $ | (32,147,643 | ) | 4,325,000 | $ | 159,081,337 | ||||||||
Goldman Sachs Future Real Estate and Infrastructure Equity ETF | ||||||||||||||||
|
|
|||||||||||||||
For the Fiscal Year
Ended August 31, 2023 |
For the Period
November 9, 2021* to August 31, 2022 |
|||||||||||||||
|
|
|||||||||||||||
Shares | Dollars | Shares | Dollars | |||||||||||||
|
|
|||||||||||||||
Fund Share Activity | ||||||||||||||||
Shares Sold |
50,000 | $ | 1,628,238 | 700,001 | $ | 27,101,017 | ||||||||||
Shares Redeemed |
(25,000 | ) | (826,941 | ) | (1 | ) | (40 | ) | ||||||||
NET INCREASE IN SHARES |
25,000 | $ | 801,297 | 700,000 | $ | 27,100,977 |
* | Commencement of operations |
51
GOLDMAN SACHS FUTURE ETFS
Notes to Financial Statements (continued)
August 31, 2023
5. CREATION AND REDEMPTION OF CREATION UNITS (continued) |
Goldman Sachs Future Tech Leaders Equity ETF | ||||||||||||||||
|
|
|||||||||||||||
For the Fiscal Year
Ended August 31, 2023 |
For the Period
September 14, 2021* to August 31, 2022 |
|||||||||||||||
|
|
|||||||||||||||
Shares | Dollars | Shares | Dollars | |||||||||||||
|
|
|||||||||||||||
Fund Share Activity | ||||||||||||||||
Shares Sold |
800,000 | $ | 16,946,509 | 11,700,000 | $ | 422,462,591 | ||||||||||
Shares Redeemed |
(650,000 | ) | (15,575,293 | ) | (1,650,000 | ) | (42,748,691 | ) | ||||||||
NET INCREASE IN SHARES |
150,000 | $ | 1,371,216 | 10,050,000 | $ | 379,713,900 |
* | Commencement of operations |
6. PORTFOLIO SECURITIES TRANSACTIONS |
The cost of purchases and proceeds from sales and maturities of long-term securities for the fiscal year ended August 31, 2023, were as follows:
Fund | Purchases | Sales | ||||||||
Goldman Sachs Future Consumer Equity ETF |
$ | 29,785,455 | $ | 17,974,512 | ||||||
Goldman Sachs Future Health Care Equity ETF |
29,552,384 | 29,572,806 | ||||||||
Goldman Sachs Future Planet Equity ETF |
31,074,028 | 33,749,711 | ||||||||
Goldman Sachs Future Real Estate and Infrastructure Equity ETF |
7,186,720 | 6,940,989 | ||||||||
Goldman Sachs Future Tech Leaders Equity ETF |
106,374,772 | 105,412,965 |
The purchases and sales from in-kind creation and redemption transactions for the fiscal year ended August 31, 2023, were as follows:
Fund | Purchases | Sales | ||||||||
Goldman Sachs Future Consumer Equity ETF |
$ | 50,821,631 | $ | 2,496,721 | ||||||
Goldman Sachs Future Health Care Equity ETF |
11,965,227 | 10,076,416 | ||||||||
Goldman Sachs Future Planet Equity ETF |
7,101,493 | 37,041,298 | ||||||||
Goldman Sachs Future Real Estate and Infrastructure Equity ETF |
1,603,791 | 808,867 | ||||||||
Goldman Sachs Future Tech Leaders Equity ETF |
13,371,833 | 12,547,687 |
7. SECURITIES LENDING |
The Funds may lend their securities through a securities lending agent, the Bank of New York Mellon (“BNYM”), to certain qualified borrowers. In accordance with the Funds’ securities lending procedures, the Funds receive cash collateral at least equal to the market value of the securities on loan. The market value of the loaned securities is determined at the close of business of the Funds, at their last sale price or official closing price on the principal exchange or system on which they are traded, and any additional required collateral is delivered to the Funds on the next business day. As with other extensions of credit, the Funds may experience delay in the recovery of their securities or incur a loss should the borrower of the securities breach its agreement with
52
GOLDMAN SACHS FUTURE ETFS
7. SECURITIES LENDING (continued) |
the Funds or become insolvent at a time when the collateral is insufficient to cover the cost of repurchasing securities on loan. Dividend income received from securities on loan may not be subject to withholding taxes and therefore withholding taxes paid may differ from the amounts listed in the Statements of Operations. Loans of securities are terminable at any time and as such 1) the remaining contractual maturities of the outstanding securities lending transactions are considered to be overnight and continuous and 2) the borrower, after notice, is required to return borrowed securities within the standard time period for settlement of securities transactions.
The Funds invest the cash collateral received in connection with securities lending transactions in the Goldman Sachs Financial Square Government Fund (“Government Money Market Fund”), an affiliated series of the Goldman Sachs Trust. The Government Money Market Fund is registered under the Act as an open end investment company, is subject to Rule 2a-7 under the Act, and is managed by GSAM, for which GSAM may receive a management fee of up to 0.16% on an annualized basis of the average daily net assets of the Government Money Market Fund.
In the event of a default by a borrower with respect to any loan, BNYM may exercise any and all remedies provided under the applicable borrower agreement to make the Funds whole. These remedies include purchasing replacement securities by applying the collateral held from the defaulting broker against the purchase cost of the replacement securities. If BNYM is unable to purchase replacement securities, BNYM will indemnify the Funds by paying the Funds an amount equal to the market value of the securities loaned minus the value of cash collateral received from the borrower for the loan, subject to an exclusion for any shortfalls resulting from a loss of value in such cash collateral due to reinvestment risk. The Funds’ master netting agreements with certain borrowers provide the right, in the event of a default (including bankruptcy or insolvency), for the non-defaulting party to liquidate the collateral and calculate net exposure to the defaulting party or request additional collateral. However, in the event of a default by a borrower, a resolution authority could determine that such rights are not enforceable due to the restrictions or prohibitions against the right of set-off that may be imposed in accordance with a particular jurisdiction’s bankruptcy or insolvency laws. The Funds’ loaned securities were all subject to enforceable Securities Lending Agreements, and the value of the collateral was at least equal to the value of the cash received. The amounts of the Funds’ overnight and continuous agreements, which represent the gross amounts of recognized liabilities for securities lending transactions outstanding as of August 31, 2023, are disclosed as “Payable upon return of securities loaned” on the Statements of Assets and Liabilities, where applicable.
Both the Funds and BNYM received compensation relating to the lending of the Funds’ securities. The amounts earned, if any, by the Funds for the fiscal year ended August 31, 2023, are reported under Investment Income on the Statements of Operations.
The following table provides information about the Funds’ investment in the Government Money Market Fund for the fiscal year ended August 31, 2023:
Fund | Beginning value as of August 31, 2022 |
Purchases at Cost |
Proceeds from Sales |
Ending value as of August 31, 2023 |
||||||||||||||
Goldman Sachs Future Consumer Equity ETF |
$ | — | $ | 3,377,543 | $ | (2,629,906 | ) | $ | 747,637 | |||||||||
Goldman Sachs Future Health Care Equity ETF |
— | 4,199,233 | (4,199,233 | ) | — | |||||||||||||
Goldman Sachs Future Planet Equity ETF |
1,990,428 | 20,203,676 | (21,083,723 | ) | 1,110,381 | |||||||||||||
Goldman Sachs Future Real Estate and Infrastructure Equity ETF |
— | 2,569,199 | (2,569,199 | ) | — | |||||||||||||
Goldman Sachs Future Tech Leaders Equity ETF |
706,501 | 4,848,214 | (5,554,715 | ) | — |
53
GOLDMAN SACHS FUTURE ETFS
Notes to Financial Statements (continued)
August 31, 2023
8. TAX INFORMATION |
The tax character of distributions paid during the fiscal years ended August 31, 2023 and August 31, 2022 were as follows:
Goldman Sachs Future Consumer Equity ETF |
Goldman Sachs Future Health Care Equity ETF |
Goldman Sachs Future Planet Equity ETF |
Goldman Sachs Future Real Estate and Infrastructure Equity ETF |
Goldman Sachs Future Tech Leaders Equity ETF |
||||||||||||||||
Distributions paid from: |
||||||||||||||||||||
Ordinary Income |
$ | — | $ | 102 | $ | 617,909 | $ | 445,287 | $ | 48,204 | ||||||||||
Capital Gains |
— | — | — | — | — | |||||||||||||||
Total taxable distributions |
$ | — | $ | 102 | $ | 617,909 | $ | 445,287 | $ | 48,204 |
Goldman Sachs Future Consumer Equity ETF* |
Goldman Sachs Future Health Care Equity ETF* |
Goldman Sachs Future Planet Equity ETF |
Goldman Sachs and Infrastructure |
Goldman Sachs Leaders |
||||||||||||||||
Distributions paid from: |
||||||||||||||||||||
Ordinary Income |
$ | 202,678 | $ | — | $ | 755,496 | $ | 211,263 | $ | 9,965 | ||||||||||
Capital Gains |
— | — | — | — | — | |||||||||||||||
Total taxable distributions |
$ | 202,678 | $ | — | $ | 755,496 | $ | 211,263 | $ | 9,965 | ||||||||||
Return of Capital |
$ | 74,347 | $ | — | $ | — | $ | — | $ | — |
* | Commenced operations on November 9, 2021. |
** | Commenced operations on September 14, 2021. |
As of August 31, 2023, the components of accumulated earnings (losses) on a tax basis were as follows:
Goldman Sachs Future Consumer Equity ETF |
Goldman Sachs Future Health Care Equity ETF |
Goldman Sachs Future Planet Equity ETF |
Goldman Sachs Future Real Estate and Infrastructure Equity ETF |
Goldman Sachs Future Tech Leaders Equity ETF |
||||||||||||||||
Undistributed ordinary income — net |
$ | 360,645 | $ | 134,205 | $ | 1,310,874 | $ | 40,716 | $ | 431,476 | ||||||||||
Undistributed long-term capital gains |
— | — | — | — | — | |||||||||||||||
Total undistributed earnings |
$ | 360,645 | $ | 134,205 | $ | 1,310,874 | $ | 40,716 | $ | 431,476 | ||||||||||
Capital loss carryforwards: |
||||||||||||||||||||
Perpetual Short-Term |
$ | (4,207,635 | ) | $ | (3,732,076 | ) | $ | (1,689,183 | ) | $ | (619,615 | ) | $ | (35,991,302 | ) | |||||
Perpetual Long-Term |
— | — | (434,932 | ) | — | (6,921,885 | ) | |||||||||||||
Timing differences (Late Year Ordinary Loss Deferral/Post October Capital Loss Deferral) |
(2,589,572 | ) | (5,683,882 | ) | (4,661,043 | ) | (962,910 | ) | (41,838,379 | ) | ||||||||||
Unrealized gains (losses) — net |
(8,039,750 | ) | (1,285,834 | ) | (35,897,322 | ) | (2,897,129 | ) | (37,817,314 | ) | ||||||||||
Total accumulated earnings (losses) net |
$ | (14,476,312 | ) | $ | (10,567,587 | ) | $ | (41,371,606 | ) | $ | (4,438,938 | ) | $ | (122,137,404 | ) |
54
GOLDMAN SACHS FUTURE ETFS
8. TAX INFORMATION (continued) |
As of August 31, 2023, each Fund’s aggregate security unrealized gains and losses based on cost for U.S. federal income tax purposes were as follows:
Goldman
Sachs Future Consumer Equity ETF |
Goldman Sachs Future Health Care Equity ETF |
Goldman Sachs Future Planet Equity ETF |
Goldman Sachs Future Real Estate and Infrastructure Equity ETF |
Goldman Sachs Future Tech Leaders Equity ETF |
||||||||||||||||
Tax Cost |
$ | 164,037,896 | $ | 111,227,062 | $ | 174,656,070 | $ | 26,047,517 | $ | 290,166,607 | ||||||||||
Gross unrealized gain |
15,888,751 | 11,573,296 | 4,636,883 | 806,619 | 28,107,859 | |||||||||||||||
Gross unrealized loss |
(23,928,501 | ) | (12,859,130 | ) | (40,534,205 | ) | (3,703,748 | ) | (65,925,173 | ) | ||||||||||
Net unrealized gains (losses) |
$ | (8,039,750 | ) | $ | (1,285,834 | ) | $ | (35,897,322 | ) | $ | (2,897,129 | ) | $ | (37,817,314 | ) |
The difference between GAAP-basis and tax-basis unrealized gains (losses) is attributable primarily to wash sales and differences in the tax treatment of partnership investments, and passive foreign investment company investments.
In order to present certain components of the Fund’s capital accounts on a tax-basis, certain reclassifications have been recorded to the Fund’s accounts. These reclassifications have no impact on the net asset value of the Fund and result primarily from net operating losses and redemption in-kind transactions.
Fund | Paid-in Capital | Total Distributable Earnings |
||||||||
Goldman Sachs Future Consumer Equity ETF |
$ | 1,115,471 | $ | (1,115,471 | ) | |||||
Goldman Sachs Future Health Care Equity ETF |
$ | 846,947 | $ | (846,947 | ) | |||||
Goldman Sachs Future Planet Equity ETF |
$ | 244,800 | $ | (244,800 | ) | |||||
Goldman Sachs Future Real Estate and Infrastructure Equity ETF |
$ | (33,291 | ) | $ | 33,291 | |||||
Goldman Sachs Future Tech Leaders Equity ETF |
$ | 394,151 | $ | (394,151 | ) |
GSAM has reviewed the Funds’ tax positions for all open tax years (the current and prior years, as applicable) and has concluded that no provision for income tax is required in the Funds’ financial statements. Such open tax year remains subject to examination and adjustment by tax authorities.
9. OTHER RISKS |
The Funds’ risks include, but are not limited to, the following:
Foreign and Emerging Countries Risk — Investing in foreign markets may involve special risks and considerations not typically associated with investing in the U.S. 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 a Fund invests. The imposition of sanctions, exchange controls (including repatriation restrictions), confiscation of assets and property, trade restrictions (including tariffs) and other government restrictions by the U.S. or other governments, or from problems in 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 a Fund
55
GOLDMAN SACHS FUTURE ETFS
Notes to Financial Statements (continued)
August 31, 2023
9. OTHER RISKS (continued) |
from buying and selling securities (in the sanctioned country and other markets), significantly delay or prevent the settlement of securities transactions, and significantly impact a 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 a Fund has exposure to foreign currencies) to decline in value. Currency exchange rates may fluctuate significantly over short periods of time. To the extent that a Fund also invests in securities of issuers located in, or economically tied to, emerging markets, these risks may be more pronounced.
Foreign Custody Risk — If a Fund invests in foreign securities, the Fund may hold such 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 a 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 undeveloped 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 a Fund focuses its investments in securities of issuers located in a particular country or geographic region, the Fund may be subjected, to a greater extent than if its 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.
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 Transactions 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 specificed 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 and may, therefore, have a material upward or downward effect on the market price of the Shares.
Market and Credit Risks — In the normal course of business, a Fund trades financial instruments and enters into financial transactions where risk of potential loss exists due to changes in the market (market risk). The value of the securities in which a 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 a Fund and its investments. Additionally, a Fund may also be exposed to credit risk in the event that an issuer or guarantor fails to perform or that an institution or entity with which the Fund has unsettled or open transactions defaults.
56
GOLDMAN SACHS FUTURE ETFS
9. OTHER RISKS (continued) |
Market Trading Risk — Each 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. 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. The Investment Adviser cannot predict whether Shares will trade below, at or above their NAV. Price differences may be due, in large part, to the fact that supply and demand forces at work in the secondary trading market for Shares will be closely related to, but not identical to, the same forces influencing the prices of the securities of a Fund’s portfolio trading individually or in the aggregate at any point in time.
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 Funds are non-diversified, meaning that they are permitted to invest a larger percentage of their assets in one or more issuers or in fewer issuers than diversified mutual funds. Thus, a 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.
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). 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. For more information, see the section entitled Tax Advantaged Product Structure in the Prospectus.
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 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. In addition, the Investment Adviser is not required to monitor on an ongoing basis whether a current holding continues to be aligned with one or more themes or otherwise associated with certain themes. The Fund is not required to sell, and may instead add to, positions in holdings that no longer continue to be aligned with one or more of the Key Themes or associated with these themes.
10. INDEMNIFICATIONS |
Under the Trust’s organizational documents, its Trustees, officers, employees and agents are indemnified, to the extent permitted by the Act and state law, against certain liabilities that may arise out of performance of their duties to the Funds. Additionally, in the course of business, the Funds enter into contracts that contain a variety of indemnification clauses. The Funds’ maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Funds that have not yet occurred. However, GSAM believes the risk of loss under these arrangements to be remote.
11. OTHER MATTERS |
Pursuant to an effort to consolidate the membership of the Board of Trustees of the Trust (the “Board”) with the Board of Trustees of each of Goldman Sachs ETF Trust II, Goldman Sachs Real Estate Diversified Income Fund, Goldman Sachs Trust, Goldman
57
GOLDMAN SACHS FUTURE ETFS
Notes to Financial Statements (continued)
August 31, 2023
11. OTHER MATTERS (continued) |
Sachs Trust II and Goldman Sachs Variable Insurance Trust, in July 2023, the Board voted to nominate Gregory G. Weaver, Dwight L. Bush, Kathryn A. Cassidy, John G. Chou, Joaquin Delgado, Eileen H. Dowling and Paul C. Wirth (the “Nominees”) for election as Trustees of the Trust at a virtual special joint meeting of shareholders to be held on November 16, 2023. Each of the Nominees currently serve as a Trustee of each of the Goldman Sachs Trust and Goldman Sachs Variable Insurance Trust. If elected, the Nominees will serve as Trustees alongside the current Trustees of the Trust. This annual report is not a proxy statement. Information regarding the election of the Nominees is contained in the proxy materials filed with the SEC. The proxy statement has been mailed to shareholders of record, and shareholders can also access the proxy statement, and any other relevant documents, on the SEC’s website.
12. SUBSEQUENT EVENTS |
Subsequent events after the Statements of Assets and Liabilities date have been evaluated, and GSAM has concluded that there is no impact requiring adjustment or disclosure in the financial statements.
58
GOLDMAN SACHS FUTURE ETFS
Report of Independent Registered Public Accounting Firm
To the Board of Trustees of Goldman Sachs ETF Trust and Shareholders of Goldman Sachs Future Consumer Equity ETF, Goldman Sachs Future Health Care Equity ETF, Goldman Sachs Future Planet Equity ETF, Goldman Sachs Future Real Estate and Infrastructure Equity ETF, and Goldman Sachs Future Tech Leaders Equity ETF
Opinions on the Financial Statements
We have audited the accompanying statements of assets and liabilities, including the schedules of investments, of each of the funds indicated in the table below (five of the funds constituting Goldman Sachs ETF Trust, hereafter collectively referred to as the “Funds”) as of August 31, 2023, the related statements of operations and of changes in net assets for each of the periods indicated in the table below, including the related notes, and the financial highlights for each of the periods indicated in the table below (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of each of the Funds as of August 31, 2023, the results of each of their operations, the changes in each of their net assets, and each of the financial highlights for each of the periods indicated in the table below, in conformity with accounting principles generally accepted in the United States of America.
Fund | Statement of operations |
Statement of changes in net assets |
Financial highlights | |||
Goldman Sachs Future Planet Equity ETF |
For the year ended August 31, 2023 |
For the two years ended August 31, 2023 | For the periods indicated therein | |||
Goldman Sachs Future Tech Leaders Equity ETF |
For the year ended August 31, 2023 |
For the year ended August 31, 2023, and for the period September 14, 2021 (commencement of operations) through August 31, 2022 | ||||
Goldman Sachs Future Consumer Equity ETF, Goldman Sachs Future Health Care Equity ETF, and Goldman Sachs Future Real Estate and Infrastructure Equity ETF |
For the year ended August 31, 2023 |
For the year ended August 31, 2023, and for the period November 9, 2021 (commencement of operations) through August 31, 2022 |
Basis for Opinions
These financial statements are the responsibility of the Funds’ management. Our responsibility is to express an opinion on the Funds’ financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Funds in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits of these financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our procedures included confirmation of securities owned as of August 31, 2023 by correspondence with the custodian and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinions.
/s/ PricewaterhouseCoopers LLP
Boston, Massachusetts
October 25, 2023
We have served as the auditor of one or more investment companies in the Goldman Sachs fund complex since 2000.
59
GOLDMAN SACHS FUTURE ETFS
Fund Expenses — Six Month Period ended 08/31/2023 (Unaudited)
As a shareholder you incur ongoing costs, including management fees and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in Shares of the Funds and to compare these costs with the ongoing costs of investing in other exchange-traded funds. This example does not take into account brokerage commissions that you may pay on your purchases and sales of Shares of a Fund.
The example is based on an investment of $1,000 invested at the beginning of the period from March 1, 2023 and held for the six months ended August 31, 2023, which represents a period of 184 days of a 365 day year (or less where indicated).
Actual Expenses — The first line in the table below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the six months. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000=8.6), then multiply the result by the number in the first line under the heading entitled “Expenses Paid” to estimate the expenses you paid on your account during this period.
Hypothetical Example for Comparison Purposes — The second line in the table below provides information about hypothetical account values and hypothetical expenses based on a Fund’s actual net expense ratios and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in a Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as redemption fees, or exchange fees. Therefore, the second line of the table is useful in comparing ongoing costs only and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
Goldman Sachs Future
Consumer Equity ETF |
Goldman Sachs Future Health
Care Equity ETF |
Goldman Sachs Future Planet Equity ETF | Goldman Sachs Future Real Estate
and Infrastructure Equity ETF |
Goldman Sachs Future Tech
Leaders Equity ETF |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Beginning Account Value 3/1/23 |
Ending Account Value 8/31/23 |
Expenses Paid* |
Beginning Account Value 3/1/23 |
Ending Account Value 8/31/23 |
Expenses Paid* |
Beginning Account Value 3/1/23 |
Ending Account Value 8/31/23 |
Expenses Paid* |
Beginning Account Value 3/1/23 |
Ending Account Value 8/31/23 |
Expenses Paid* |
Beginning Account Value 3/1/23 |
Ending Account Value 8/31/23 |
Expenses Paid* |
||||||||||||||||||||||||||||||||||||||||||||||
Actual based on NAV |
$ | 1,000 | $ | 1,084.20 | $ | 3.94 | $ | 1,000 | $ | 1,041.44 | $ | 3.86 | $ | 1,000 | $ | 969.45 | $ | 3.72 | $ | 1,000 | $ | 988.62 | $ | 3.76 | $ | 1,000 | $ | 1,081.47 | $ | 3.94 | ||||||||||||||||||||||||||||||
Hypothetical 5% return |
1,000 | 1,021.42 | + | 3.82 | 1,000 | 1,021.42 | + | 3.82 | 1,000 | 1,021.42 | + | 3.82 | 1,000 | 1,021.42 | + | 3.82 | 1,000 | 1,021.42 | + | 3.82 |
+ | Hypothetical expenses are based on the Fund’s actual annualized net expense ratios and an assumed rate of return of 5% per year before expenses. |
* | Expenses for each Fund is calculated using the Fund’s annualized net expense ratio, which represents the ongoing expenses as a percentage of net assets for the fiscal year ended August 31, 2023. Expenses are calculated by multiplying the annualized net expense ratio by the average account value for the period; then multiplying the result by the number of days in the most recent fiscal year; and then dividing that result by the number of days in the fiscal year. The annualized net expense ratio for the period is as follows: |
Fund | ||||
Goldman Sachs Future Consumer Equity ETF |
0.75 | % | ||
Goldman Sachs Future Health Care Equity ETF |
0.75 | |||
Goldman Sachs Future Planet Equity ETF |
0.75 | |||
Goldman Sachs Future Real Estate and Infrastructure Equity ETF |
0.75 | |||
Goldman Sachs Future Tech Leaders Equity ETF |
0.75 |
60
GOLDMAN SACHS FUTURE ETFS
Trustees and Officers (Unaudited) Independent Trustees
Name, Address and Age1 |
Position(s)
Held with the Trust |
Term
of Length
of |
Principal
Occupation(s) During Past 5 Years |
Number
of Portfolios in Fund Complex Overseen by Trustee3 |
Other Directorships Held by Trustee4 | |||||
Cheryl K. Beebe Age: 67 |
Chair of
the Board of Trustees |
Since 2021 |
Ms. Beebe is retired. She is Director, Packaging Corporation of America (2008-Present); Director, The Mosaic Company (2019-Present); Director, HanesBrands Inc. (2020-Present); and was formerly Director, Convergys Corporation (a global leader in customer experience outsourcing) (2015-2018); and formerly held the position of Executive Vice President, (2010-2014); and Chief Financial Officer, Ingredion, Inc. (a leading global ingredient solutions company) (2004-2014).
Chair of the Board of Trustees — Goldman Sachs ETF Trust; Goldman Sachs Trust II; Goldman Sachs ETF Trust II; Goldman Sachs MLP and Energy Renaissance Fund; and Goldman Sachs Real Estate Diversified Income Fund. |
68 | Packaging Corporation of America (producer of container board); The Mosaic Company (producer of phosphate and potash fertilizer); HanesBrands Inc. (a multinational clothing company) | |||||
Lawrence Hughes Age: 65 |
Trustee | Since 2021 |
Mr. Hughes is retired. Formerly, he held senior management positions with BNY Mellon Wealth Management, a division of The Bank of New York Mellon Corporation (a financial services company) (1991-2015), most recently as Chief Executive Officer (2010-2015). Previously, Mr. Hughes served as an Advisory Board Member of Goldman Sachs Trust II (February 2016-April 2016).
Trustee — Goldman Sachs ETF Trust; Goldman Sachs ETF Trust II; Goldman Sachs Trust II; Goldman Sachs MLP and Energy Renaissance Fund; and Goldman Sachs Real Estate Diversified Income Fund. |
68 | None | |||||
John F. Killian Age: 68 |
Trustee | Since 2021 |
Mr. Killian is retired. He is Director, Consolidated Edison, Inc. (2007-Present); and was formerly Director, Houghton Mifflin Harcourt Publishing Company (2011-2022). Previously, he held senior management positions with Verizon Communications, Inc., including Executive Vice President and Chief Financial Officer (2009-2010); and President, Verizon Business, Verizon Communications, Inc. (2005-2009).
Trustee — Goldman Sachs ETF Trust; Goldman Sachs ETF Trust II; Goldman Sachs Trust II; Goldman Sachs MLP and Energy Renaissance Fund; and Goldman Sachs Real Estate Diversified Income Fund. |
68 | Consolidated Edison, Inc. (a utility holding company) | |||||
Steven D. Krichmar Age: 65 |
Trustee | Since 2021 |
Mr. Krichmar is retired. Formerly, he held senior management and governance positions with Putnam Investments, LLC, a financial services company (2001-2016). He was most recently Chief of Operations and a member of the Operating Committee of Putnam Investments, LLC and Principal Financial Officer of The Putnam Funds. Previously, Mr. Krichmar served as an Audit Partner with PricewaterhouseCoopers LLP and its predecessor company (1990-2001).
Trustee — Goldman Sachs ETF Trust; Goldman Sachs ETF Trust II; Goldman Sachs Trust II; Goldman Sachs MLP and Energy Renaissance Fund; and Goldman Sachs Real Estate Diversified Income Fund. |
68 | None | |||||
Michael Latham Age: 57 |
Trustee | Since 2015 |
Mr. Latham is retired. Formerly, he held senior management positions with the iShares exchange-traded fund business owned by BlackRock, Inc., including Chairman (2011-2014); Global Head (2010-2011); U.S. Head (2007-2010); and Chief Operating Officer (2003-2007).
Trustee — Goldman Sachs ETF Trust; Goldman Sachs ETF Trust II; Goldman Sachs Trust II; Goldman Sachs MLP and Energy Renaissance Fund; Goldman Sachs Credit Income Fund; and Goldman Sachs Real Estate Diversified Income Fund. |
69 | None | |||||
61
GOLDMAN SACHS FUTURE ETFS
Trustees and Officers (Unaudited) (continued) Independent Trustees
Name, Address and Age1 |
Position(s)
Held with the Trust |
Term
of Length
of |
Principal
Occupation(s) During Past 5 Years |
Number
of Portfolios in Fund Complex Overseen by Trustee3 |
Other Directorships Held by Trustee4 | |||||
Lawrence W. Stranghoener Age: 69 |
Trustee | Since 2015 |
Mr. Stranghoener is retired. He is Chairman, Kennametal, Inc. (a global manufacturer and distributor of tooling and industrial materials) (2003-Present); and was formerly Director, Aleris Corporation and Aleris International, Inc. (a producer of aluminum rolled products) (2011-2020); Interim Chief Executive Officer (2014) and Executive Vice President and Chief Financial Officer (2004-2014), Mosaic Company (a fertilizer manufacturing company).
Trustee — Goldman Sachs ETF Trust; Goldman Sachs Trust II; Goldman Sachs ETF Trust II; Goldman Sachs MLP and Energy Renaissance Fund; and Goldman Sachs Real Estate Diversified Income Fund.
Chair of the Board of Trustees — Goldman Sachs Credit Income Fund. |
69 | Kennametal, Inc. (a global manufacturer and distributor of tooling and industrial materials) | |||||
Interested Trustee*
Name, Address and Age1 |
Position(s)
Held with the Trust |
Term
of Office and Length of Time Served2 |
Principal
Occupation(s) During Past 5 Years |
Number
of Portfolios in Fund Complex Overseen by Trustee3 |
Other Directorships Held by Trustee4 | |||||
James A. McNamara Age: 60 |
President and Trustee | Since 2014 |
Advisory Director, Goldman Sachs (January 2018-Present); Managing Director, Goldman Sachs (January 2000-December 2017); Director of Institutional Fund Sales, GSAM (April 1998-December 2000); and Senior Vice President and Manager, Dreyfus Institutional Service Corporation (January 1993-April 1998).
President and Trustee — Goldman Sachs ETF Trust; Goldman Sachs ETF Trust II; Goldman Sachs Trust; Goldman Sachs Variable Insurance Trust; Goldman Sachs Trust II; Goldman Sachs MLP and Energy Renaissance Fund; Goldman Sachs Credit Income Fund; and Goldman Sachs Real Estate Diversified Income Fund. |
172 | None | |||||
* | Mr. McNamara is considered to be an “Interested Trustee” because he holds a position with Goldman Sachs and owns securities issued by The Goldman Sachs Group, Inc. The Interested Trustee holds comparable positions with certain other companies of which Goldman Sachs, GSAM or an affiliate thereof is the investment adviser, administrator and/or distributor. |
1 | Each Trustee may be contacted by writing to the Trustee, c/o Goldman Sachs, 200 West Street, New York, New York, 10282, Attn: Caroline Kraus. Information is provided as of August 31, 2023. |
2 | Each Trustee holds office for an indefinite term, until the earliest of: (a) the election of his or her successor; (b) the date the Trustee resigns or is removed by the Board or shareholders, in accordance with the Trust’s Declaration of Trust; or (c) the termination of the Trust. The Board has adopted policies which provide that each Independent Trustee shall retire as of December 31st of the calendar year in which he or she reaches (a) his or her 74th birthday or (b) the 15th anniversary of the date he or she became a Trustee, whichever is earlier, unless a waiver of such requirements shall have been adopted by a majority of the other Trustees. These policies may be changed by the Trustees without shareholder vote. |
3 | The Goldman Sachs Fund Complex includes certain other companies listed above for each respective Trustee. As of August 31, 2023, Goldman Sachs ETF Trust consisted of 67 portfolios (32 of which offered shares to the public); Goldman Sachs ETF Trust II consisted of 2 portfolios; Goldman Sachs Trust consisted of 87 portfolios; Goldman Sachs Variable Insurance Trust consisted of 15 portfolios (11 of which offered shares to the public); Goldman Sachs Trust II consisted of 18 portfolios (7 of which offered shares to the public); and Goldman Sachs MLP and Energy Renaissance Fund, Goldman Sachs Credit Income Fund and Goldman Sachs Real Estate Diversified Income Fund each consisted of one portfolio. Goldman Sachs MLP and Energy Renaissance Fund and Goldman Sachs Credit Income Fund each did not offer shares to the public. |
4 | This column includes only directorships of companies required to report to the Securities and Exchange Commission under the Securities Exchange Act of 1934 (i.e., “public companies”) or other investment companies registered under the Act. |
Additional information about the Trustees is available in the Funds’ Statement of Additional Information, which can be obtained from Goldman Sachs free of charge by calling this toll-free number (in the United States of America): 1-800-526-7384.
62
GOLDMAN SACHS FUTURE ETFS
Trustees and Officers (Unaudited) (continued) Officers of the Trust*
Name, Address and Age1 |
Positions Held with the Trust |
Term of Office
and |
Principal Occupation(s) During Past 5 Years | |||
James A. McNamara 200 West Street New York, NY 10282 Age: 60 |
Trustee and President | Since 2014 |
Advisory Director, Goldman Sachs (January 2018-Present); Managing Director, Goldman Sachs (January 2000-December 2017); Director of Institutional Fund Sales, GSAM (April 1998-December 2000); and Senior Vice President and Manager, Dreyfus Institutional Service Corporation (January 1993-April 1998).
President and Trustee — Goldman Sachs ETF Trust; Goldman Sachs Trust; Goldman Sachs Variable Insurance Trust; Goldman Sachs Trust II; Goldman Sachs ETF Trust II; Goldman Sachs MLP and Energy Renaissance Fund; Goldman Sachs Credit Income Fund; and Goldman Sachs Real Estate Diversified Income Fund. | |||
Caroline L. Kraus 200 West Street New York, NY 10282 Age: 46 |
Secretary | Since 2014 |
Managing Director, Goldman Sachs (January 2016-Present); Vice President, Goldman Sachs (August 2006-December 2015); Senior Counsel, Goldman Sachs (January 2020-Present); Associate General Counsel, Goldman Sachs (2012-December 2019); Assistant General Counsel, Goldman Sachs (August 2006-December 2011); and Associate, Weil, Gotshal & Manges, LLP (2002-2006).
Secretary — Goldman Sachs ETF Trust; Goldman Sachs Trust (previously Assistant Secretary (2012)); Goldman Sachs Variable Insurance Trust (previously Assistant Secretary (2012)); Goldman Sachs Trust II; Goldman Sachs ETF Trust II; Goldman Sachs BDC, Inc.; Goldman Sachs Private Middle Market Credit LLC; Goldman Sachs Private Middle Market Credit II LLC; Goldman Sachs Middle Market Lending Corp.; Goldman Sachs MLP and Energy Renaissance Fund; Goldman Sachs Credit Income Fund; and Goldman Sachs Real Estate Diversified Income Fund. | |||
Joseph F. DiMaria 30 Hudson Street Jersey City, NJ 07302 Age: 55 |
Treasurer, Principal Financial Officer and Principal Accounting Officer |
Since 2017 (Treasurer and Principal Financial Officer since 2019) |
Managing Director, Goldman Sachs (November 2015-Present) and Vice President-Mutual Fund Administration, Columbia Management Investment Advisers, LLC (May 2010-October 2015).
Treasurer, Principal Financial Officer and Principal Accounting Officer — Goldman Sachs ETF Trust (previously Assistant Treasurer (2017)); Goldman Sachs Trust (previously Assistant Treasurer (2016)); Goldman Sachs Variable Insurance Trust (previously Assistant Treasurer (2016)); Goldman Sachs Trust II (previously Assistant Treasurer (2017)); Goldman Sachs MLP and Energy Renaissance Fund (previously Assistant Treasurer (2017)); Goldman Sachs ETF Trust II; Goldman Sachs Credit Income Fund; and Goldman Sachs Real Estate Diversified Income Fund. | |||
* | Represents a partial list of officers of the Trust. Additional information about all the officers is available in the Funds’ Statement of Additional Information, which can be obtained from Goldman Sachs free of charge by calling this toll-free number (in the United States): 1-800-621-2550. |
1 | Information is provided as of August 31, 2023. |
2 | Officers hold office at the pleasure of the Board of Trustees or until their successors are duly elected and qualified. Each officer holds comparable positions with certain other companies of which Goldman Sachs, GSAM or an affiliate thereof is the investment adviser, administrator and/or distributor. |
Goldman Sachs ETF Trust — Future ETFs — Tax Information (Unaudited)
For the fiscal year ended August 31, 2023, 100%, 100%, 100%, 62.68%, and 100% of the dividends paid from net investment company taxable income by the Future Consumer Equity ETF, Future Health Care Equity ETF, Future Planet Equity ETF, Future Real Estate and Infrastructure Equity ETF, and Future Tech Leaders ETF, respectively, qualify for the reduced tax rate under the Jobs and Growth Tax Relief and Reconciliation Act of 2003.
For the year ended August 31, 2023, 37.32% of the dividends paid from net investment company taxable income by the Future Real Estate and Infrastructure Equity ETF qualify as section 199A dividends.
For the fiscal year ended August 31, 2023, 100%, 36.33%, 27.73%, and 100% of the dividends paid from net investment company taxable income by the Future Health Care Equity ETF, Future Planet Equity ETF, Future Real Estate and Infrastructure Equity ETF, and Future Tech Leaders ETF, respectively, qualify for the dividends received deduction available to corporations.
63
FUNDS PROFILE
Goldman Sachs ETFs
Goldman Sachs is a premier financial services firm, known since 1869 for creating thoughtful and customized investment solutions in complex global markets.
Today, the Asset Management Division of Goldman Sachs serves a diverse set of clients worldwide, including private institutions, public entities and individuals. With approximately $2.46 trillion in assets under supervision as of June 30, 2023, Goldman Sachs Asset Management has portfolio management teams located around the world and our investment professionals bring firsthand knowledge of local markets to every investment decision. Assets under supervision includes assets under management and other client assets for which Goldman Sachs does not have full discretion. Goldman Sachs Asset Management leverages the resources of Goldman Sachs & Co. LLC subject to legal, internal and regulatory restrictions.
GOLDMAN SACHS EXCHANGE-TRADED FUNDS |
Goldman Sachs ActiveBeta® Emerging Markets Equity ETF |
Goldman Sachs ActiveBeta® Europe Equity ETF |
Goldman Sachs ActiveBeta® International Equity ETF |
Goldman Sachs ActiveBeta® Japan Equity ETF |
Goldman Sachs ActiveBeta® U.S. Large Cap Equity ETF |
Goldman Sachs ActiveBeta® U.S. Small Cap Equity ETF |
Goldman Sachs ActiveBeta® Paris-Aligned Climate U.S. Large Cap Equity ETF |
Goldman Sachs ActiveBeta® World Low Vol Plus Equity ETF |
Goldman Sachs Bloomberg Clean Energy Equity ETF |
Goldman Sachs Community Municipal Bond ETF |
Goldman Sachs Defensive Equity ETF |
Goldman Sachs Equal Weight U.S. Large Cap Equity ETF |
Goldman Sachs Hedge Industry VIP ETF |
Goldman Sachs Innovate Equity ETF |
Goldman Sachs JUST U.S. Large Cap Equity ETF |
Goldman Sachs Access Emerging Markets USD Bond ETF |
Goldman Sachs Access High Yield Corporate Bond ETF |
Goldman Sachs Access Inflation Protected USD Bond ETF |
Goldman Sachs Access Investment Grade Corporate 1-5 Year Bond ETF |
Goldman Sachs Access Investment Grade Corporate Bond ETF |
Goldman Sachs Access Treasury 0-1 Year ETF |
Goldman Sachs Access U.S. Aggregate Bond ETF |
Goldman Sachs Access Ultra Short Bond ETF |
Goldman Sachs Community Municipal Bond ETF |
Goldman Sachs MarketBeta® Emerging Markets Equity ETF |
Goldman Sachs MarketBeta® International Equity ETF |
Goldman Sachs MarketBeta(R) U.S. Equity ETF |
Goldman Sachs MarketBeta® U.S. 1000 Equity ETF |
Goldman Sachs MarketBeta® Total International Equity ETF |
Goldman Sachs Future Planet Equity ETF Goldman Sachs Future Tech Leaders Equity ETF |
Goldman Sachs Future Health Care Equity ETF |
Goldman Sachs Future Consumer Equity ETF |
Goldman Sachs Future Real Estate and Infrastructure Equity ETF |
Goldman Sachs North American Pipelines & Power Equity ETF |
Goldman Sachs Small Cap Core Equity ETF
|
TRUSTEES Cheryl K. Beebe, Chair Lawrence Hughes John F. Killian Steven D. Krichmar Michael Latham James A. McNamara Lawrence W. Stranghoener |
OFFICERS James A. McNamara, President Joseph F. DiMaria, Principal Financial Officer, Principal Accounting Officer and Treasurer Robert Griffith, Secretary*
* Effective September 20, 2023 | |
THE BANK OF NEW YORK MELLON Transfer Agent |
||
ALPS DISTRIBUTORS, INC. Distributor |
GOLDMAN SACHS ASSET MANAGEMENT, L.P. Investment Adviser |
Visit our Website at www.GSAMFUNDS.com/ETFs to obtain the most recent month-end returns.
Goldman Sachs Asset Management, L.P., 200 West Street, New York, New York 10282
The reports concerning the Funds included in this shareholder report may contain certain forward-looking statements about the factors that may affect the performance of the Funds in the future. These statements are based on Fund management’s predictions and expectations concerning certain future events and their expected impact on the Funds, such as performance of the economy as a whole and of specific industry sectors, changes in the levels of interest rates, the impact of developing world events, and other factors that may influence the future performance of the Funds. Management believes these forward-looking statements to be reasonable, although they are inherently uncertain and difficult to predict. Actual events may cause adjustments in portfolio management strategies from those currently expected to be employed.
A description of the policies and procedures that the Funds use to determine how to vote proxies relating to portfolio securities and information regarding how the Funds voted proxies relating to portfolio securities for the most recent 12-month period ended June 30, are available (i) without charge, upon request by calling 1-800-621-2550; and (ii) on the Securities and Exchange Commission (“SEC’’) web site at http://www.sec.gov.
The Funds will file portfolio holdings information for each month in a fiscal quarter within 60 days after the end of the relevant fiscal quarter on the Form N-PORT. Portfolio holdings information for the third month of each fiscal quarter will be made available on the SEC’s web site at http://www.sec.gov. Portfolio holdings information may be obtained upon request and without charge by calling 1-800-621-2550.
Fund holdings and allocations shown are as of August 31, 2023 and may not be representative of future investments. Fund holdings should not be relied on in making investment decisions and should not be construed as research or investment advice regarding particular securities. Current and future holdings are subject to risk.
Economic and market forecasts presented herein reflect our judgment as of the date of this presentation and are subject to change without notice. These forecasts do not take into account the specific investment objectives, restrictions, tax and financial situation or other needs of any specific client. Actual data will vary and may not be reflected here. These forecasts are subject to high levels of uncertainty that may affect actual performance. Accordingly, these forecasts should be viewed as merely representative of a broad range of possible outcomes. These forecasts are estimated, based on assumptions, and are subject to significant revision and may change materially as economic and market conditions change. Goldman Sachs has no obligation to provide updates or changes to these forecasts. Case studies and examples are for illustrative purposes only.
ETF Fund shares are not individually redeemable and are issued and redeemed by the Fund at their net asset value (“NAV”) only in large, specified blocks of shares called creation units. Shares otherwise can be bought and sold only through exchange trading at market price (not NAV). Shares may trade at a premium or discount to their NAV in the secondary market. Brokerage commissions will reduce returns. Ordinary brokerage commissions apply. ALPS Distributors, Inc. is the distributor of the Goldman Sachs ETF Funds. ALPS Distributors, Inc. is unaffiliated with Goldman Sachs Asset Management.
This material is not authorized for distribution to prospective investors unless preceded or accompanied by a current Prospectus or Summary Prospectus, if applicable. Investors should consider a Fund’s objective, risks, and charges and expenses, and read the Summary Prospectus, if available, and/or the Prospectus carefully before investing or sending money. The Summary Prospectus, if available, and the Prospectus contain this and other information about a Fund and may be obtained from your authorized dealer or from Goldman Sachs & Co. LLC by calling 1-800-621-2550.
© 2023 Goldman Sachs. All rights reserved. 339623-OTU-10/23 FTRETFAR-23