Goldman Sachs Asset Management Announces Launch of Exchange-Traded Fund to Track JUST Capital’s Index
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 assets.
NEW YORK, June 12, 2018 –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 problems.”
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’s 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).
