The Goldman Sachs JUST U.S. Large Cap Equity ETF (Ticker: JUST)
invests in large capitalization U.S. companies that engage in “just
business behavior” based on rankings produced by JUST Capital
JUST will be priced to investors at 20 basis points1
and will begin trading on the NYSE Arca on June 13 with $50 million in
NEW YORK–(BUSINESS WIRE)–
GSAM today announced the launch of JUST, an exchange-traded fund (ETF)
that seeks to provide broad exposure to U.S. large cap equities, with a
focus on companies that demonstrate just business behavior, as measured
by JUST Capital. The ETF seeks to track the JUST U.S. Large Cap
Diversified Index (the Index), constructed by JUST Capital.
JUST Capital is an independent nonprofit that uses data and markets to
promote positive change in corporate behavior. To create its rankings
and the Index, JUST Capital conducts an annual survey of the American
public and then analyzes 120,000 data points across 85 unique metrics to
score companies based on how they perform on the key issues prioritized
by the public.
The Index is designed to provide the broad market exposure of the
Russell 1000 Index, while featuring only companies with above-average
scores across all major social, environmental, and governance issues
critical to the American people.
Historically, companies in the Index on average pay better, create more
jobs, pay fewer fines, give twice as much to charity, emit less
greenhouse gas, and have higher return on equity, compared with the rest
of the Russell 1000.2
“JUST Capital’s association with GSAM is grounded in a shared belief
that capitalism should be a positive force for change and that its
future will be driven by a new definition of corporate success that is
aligned with the values and priorities of the public,” said Paul Tudor
Jones, co-Founder and Chairman of JUST Capital. “We have the unique
opportunity to help shift resources toward companies driving change on
the country’s most intractable social, environmental, and economic
Companies are ranked by their overall score, and the top 50% by industry
are selected and weighted by market cap, arriving at the final index
composition. Instead of a niche or single-issue approach, companies are
ranked based on a broad range of categories from worker issues – such as
providing a living wage and workplace safety – to customer concerns –
such as privacy protection and truthful advertising – to environmental
impacts – such as minimizing pollution and resource efficiency.
“JUST is an important financial product — it specifically promotes
corporate practices and policies that society values,” said Timothy J.
O’Neill, co-head of Goldman Sachs’ Investment Management Division. “This
focus allows investment to flow toward a more sustainable and equitable
future, while seeking to generate attractive returns for investors.”
About Issuers Included in the JUST U.S. Large Cap Diversified Index2
Compared with Russell 1000 companies excluded from the Index, JUST U.S.
Large Cap Diversified Index constituents on average:
- Are twice as likely to pay nearly every worker a living wage.
- Create U.S. jobs at a 20% greater rate.
- Employ twice as many workers in the U.S.
- Produce 45% lower greenhouse gas emissions per dollar of revenue.
- Paid 71% less in fines for consumer sales-terms violations.
- Give 2.3x more to charity.
- Paid 94% less in Equal Employment Opportunity Commission Fines.
- Have a 7% higher Return on Equity (ROE).
GSAM ETF Background
- GSAM started offering ETFs in September 2015 with the launch of the
Goldman Sachs ActiveBeta® U.S. Large Cap Equity ETF (Ticker: GSLC).
- It now has 12 ETFs with over $8 billion in assets under management as
of June 11, 2018.
- GSAM launched its first fixed income ETF, the Goldman Sachs Treasury
Access 0-1 Year ETF (Ticker: GBIL) in September 2016, followed by its
Access ETF suite, which includes the Goldman Sachs Access High Yield
Corporate Bond ETF (Ticker: GHYB) and the Goldman Sachs Access
Investment Grade Corporate Bond ETF (Ticker: GIGB).
About Goldman Sachs Asset Management, L.P. (GSAM)
GSAM is the asset management arm of The Goldman Sachs Group, Inc. (NYSE:
GS), which supervises $1.29 trillion in assets as of March 31, 2018.
Goldman Sachs Asset Management has been providing discretionary
investment advisory services since 1988 and has investment professionals
in all major financial centers around the world. The company offers
investment strategies across a broad range of asset classes to
institutional and individual clients globally. Founded in 1869, Goldman
Sachs is a leading global investment banking, securities and investment
management firm that provides a wide range of financial services to a
substantial and diversified client base that includes corporations,
financial institutions, governments and high-net-worth individuals.
About JUST Capital (Just Capital Foundation, Inc.)
JUST Capital, an independent, nonprofit research organization, makes it
easier for people, companies, and markets to do the right thing by
tracking the business behaviors Americans care about most. The
organization’s research, rankings, and indexes help people make more
informed decisions about where to invest, work, and buy to direct
capital towards companies advancing a more just future. America’s Most
JUST Companies, including the groundbreaking JUST 100, is published
annually in Forbes and on JUSTCapital.com. Chaired and co-founded by
Paul Tudor Jones II, the organization’s board includes Ray Chambers,
Jeff Walker, Marc Morial, Mindy Lubber, Dan Hesse, Deepak Chopra,
Arianna Huffington, Rinaldo S. Brutoco, and Robert Deutsch amongst
1 Please note the figure shown above is the unitary
management fee. Under the management fee for JUST, Goldman Sachs Asset
Management, L.P., the Funds’ investment adviser, is responsible for
paying substantially all the expenses of the Fund, excluding the
payments under the Fund’s 12b-1 plan (if any), interest expenses, taxes,
acquired fund fees and expenses, brokerage fees, costs of holding
shareholder meetings, litigation, indemnification and extraordinary
2 Source: JUST Capital, based 2016-2017 Index constituents as
of December 12, 2017. Figures are subject to change.
Fund Risk Considerations
The Goldman Sachs JUST U.S. Large Cap Equity ETF (the “Fund”)
seeks to provide investment results that closely correspond, before fees
and expenses, to the performance of the JUST US Large Cap Diversified
Index (the “Index”), which delivers exposure to equity securities of
large-capitalization U.S. issuers that engage in “just business
behavior” based on rankings produced by JUST Capital Foundation, Inc.
The Fund’s investments are subject to market risk, which means
that the value of the securities in which it invests may go up or down
in response to the prospects of individual companies, particular sectors
or governments and/or general economic conditions. Because the Fund may concentrate
its investments in an industry or group of industries to the extent
that the Index is concentrated, the Fund may be subject to greater risk
of loss as a result of adverse economic, business or other developments
affecting that industry or group of industries. The Fund is subject to
risks of “just” investing, as the Index may weigh certain
characteristics of “just business behavior” more heavily than an
issuer’s performance or returns. The Fund is not actively managed,
and therefore the Fund will not generally dispose of a security unless
the security is removed from the Index. The Index calculation
methodology may rely on information based on assumptions and
estimates and neither the Fund nor its investment adviser can guarantee
the accuracy of the methodology’s assessment of included issuers. Performance
may vary substantially from the performance of the Index as a result
of transaction costs, expenses and other factors. 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. Ordinary
brokerage commissions apply. Brokerage commissions will reduce returns.
“JUST” and “JUST Capital” are trademarks of JUST Capital Foundation,
Inc. or its affiliates and have been licensed for use in connection with
the issuance and distribution of the Goldman Sachs JUST U.S. Large Cap
Equity ETF. The Goldman Sachs JUST U.S. Large Cap Equity ETF is not
sponsored, endorsed, sold or promoted by JUST Capital Foundation, Inc.JUST Capital Foundation, Inc., its affiliates and any other person or
entity involved in or related to compiling, computing, or creating the
Goldman Sachs JUST U.S. Large Cap Equity ETF expressly disclaim all
representations, warranties, and liabilities relating to or in
connection with the Goldman Sachs JUST U.S. Large Cap Equity ETF
(including, without limitation, any warranties of originality, accuracy,
completeness, timeliness, non-infringement, merchantability, and fitness
for a particular purpose). Neither JUST Capital Foundation, Inc. nor any
of its affiliates makes any claim, prediction, warranty or
representation whatsoever, expressly or impliedly, either as to (a) the
results to be obtained from the use of the JUST US Large Cap Diversified
Index, the Goldman Sachs JUST U.S. Large Cap Equity ETF, or any of the
data included in either of the foregoing, (b) the level at which the
JUST US Large Cap Diversified Index or Goldman Sachs JUST U.S. Large Cap
Equity ETF is said to stand at any particular time on any particular day
or otherwise, (c) the suitability of the JUST US Large Cap Diversified
Index for the purpose to which it is being put in connection with the
Goldman Sachs JUST U.S. Large Cap Equity ETF, or (d) the advisability of
investing in securities generally or in any index or ETF, including
those provided by Goldman Sachs. Neither JUST Capital Foundation, Inc.
nor any of its affiliates has provided, nor will provide, any financial
or investment advice or recommendation in relation to the JUST US Large
Cap Diversified Index or the Goldman Sachs JUST U.S. Large Cap Equity
ETF, nor will they be (i) liable (whether in negligence or otherwise) to
any person for any error in the JUST US Large Cap Diversified Index or
(ii) under any obligation to advise any person of any error therein.
Without limiting any of the foregoing, in no event shall JUST Capital
Foundation, Inc. or its affiliates have any liability for any direct,
indirect, special, incidental, punitive, consequential (including
without limitation lost profits), or any other damages in connection
with the JUST US Large Cap Diversified Index or the Goldman Sachs JUST
U.S. Large Cap Equity ETF.
The JUST US Large Cap Diversified Index is calculated and maintained by
FTSE Russell using the Russell 1000 Index as a starting universe, and
aims to reflect the performance of a JUST Capital Foundation Inc.
methodology. FTSE Russell does not sponsor, endorse, sell, or promote
any investment vehicle that is offered by any third party that seeks to
provide an investment return based on the performance of any index. It
is not possible to invest directly in an index. Frank Russell Company
(“Russell”) acts solely as calculation agent in respect of the JUST US
Large Cap Diversified Index and does not in any way sponsor, support,
promote or endorse the JUST US Large Cap Diversified Index or the
Goldman Sachs JUST U.S. Large Cap Equity ETF. The JUST US Large Cap
Diversified Index was provided on an “as is” basis. Russell, its
affiliates and any other person or entity involved in or related to
compiling, computing or creating the JUST US Large Cap Diversified Index
(collectively, the “Russell Parties”) expressly disclaim all warranties
(including, without limitation, any warranties of originality, accuracy,
completeness, timeliness, non-infringement, merchantability and fitness
for a particular purpose).
Russell does not make any claim, prediction, warranty or representation
whatsoever, expressly or impliedly, either as to (i) the results to be
obtained from the use of the JUST US Large Cap Diversified Index (upon
which the Goldman Sachs JUST U.S. Large Cap Equity ETF is based), (ii)
the figure at which the JUST US Large Cap Diversified Index is said to
stand at any particular time on any particular day or otherwise, or
(iii) the suitability of the JUST US Large Cap Diversified Index for the
purpose to which it is being put in connection with the Goldman Sachs
JUST U.S. Large Cap Equity ETF.
Russell has not provided and will not provide any financial or
investment advice or recommendation in relation to the JUST US Large Cap
Diversified Index to Goldman Sachs Asset Management or to its clients.
The JUST US Large Cap Diversified Index is calculated by Russell or its
agent as calculation agent. Russell shall not be (a) liable (whether in
negligence or otherwise) to any person for any error in the Index or (b)
under any obligation to advise any person of any error therein.
Without limiting any of the foregoing, in no event shall any Russell
Party have any liability for any direct, indirect, special, incidental,
punitive, consequential (including without limitation lost profits) or
any other damages in connection with the JUST US Large Cap Diversified
Index or the Goldman Sachs JUST U.S. Large Cap Equity ETF.
A summary prospectus, if available, or a Prospectus for the Fund
containing more information may be obtained from your authorized dealer
or from Goldman Sachs & Co. LLC by calling 1-800-621-2550. Please
consider a fund’s objectives, risks, and charges and expenses, and read
the summary prospectus, if available, and the Prospectus carefully
before investing. The summary prospectus, if available, and the
Prospectus contains this and other information about the Fund.
The Fund is newly organized and has no operating history. Please note
that one cannot invest directly into an index.
THIS MATERIAL IS FOR INFORMATIONAL PURPOSES ONLY AND IS PROVIDED SOLELY
ON THE BASIS THAT IT WILL NOT CONSTITUTE INVESTMENT OR OTHER ADVICE OR A
RECOMMENDATION RELATING TO ANY PERSON’S OR PLAN’S INVESTMENT OR OTHER
DECISIONS, AND GOLDMAN SACHS IS NOT A FIDUCIARY OR ADVISOR WITH RESPECT
TO ANY PERSON OR PLAN BY REASON OF PROVIDING THE MATERIAL OR CONTENT
HEREIN INCLUDING UNDER THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF
1974 OR DEPARTMENT OF LABOR REGULATIONS. PLAN SPONSORS AND OTHER
FIDUCIARIES SHOULD CONSIDER THEIR OWN CIRCUMSTANCES IN ASSESSING ANY
POTENTIAL COURSE OF ACTION.
The Investment Company Act of 1940 (the “Act”) imposes certain limits on
investment companies purchasing or acquiring any security issued by
another registered investment company. For these purposes the definition
of “investment company” includes funds
that are unregistered because they are excepted
from the definition of investment company by sections 3(c)(1) and
3(c)(7) of the Act. You should consult your legal counsel for more
Past performance does not guarantee future results, which may vary.
Although certain information has been obtained from sources believed to
be reliable, we do not guarantee its accuracy, completeness or fairness.
We have relied upon and assumed without independent verification, the
accuracy and completeness of all information available from public
Views and opinions expressed are for informational purposes only and do
not constitute a recommendation by GSAM to buy, sell, or hold any
security. Views and opinions are current as of the date of this press
release and may be subject to change, they should not be construed as
ALPS Distributors, Inc. is the distributor of the Goldman Sachs ETF
Funds. ALPS Distributors, Inc. is unaffiliated with Goldman Sachs Asset
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