6 min readBy Ron Koren ETF Insider
WCLD VS BOTZ
Compare the WCLD and BOTZ ETFs with our thorough analysis. Dive into the performance metrics, underlying assets, and investment strategies.
The Goldman Sachs Fund Complex (GDEF issuer) operates an actively managed ETF that focuses on investing in a diversified portfolio of equity securities and related instruments, with at least 80% of its net assets directed towards such investments. The fund typically targets equity securities of U.S. issuers within a specific market capitalization range and implements a Put Spread Collar overlay strategy. This strategy involves purchasing put options on indexes or ETFs at higher strike prices while simultaneously writing put options at lower strike prices and selling call options on the same indexes or ETFs, providing downside protection. Additionally, the fund may employ various quantitative techniques alongside a qualitative overlay for investment selection, and it may deviate from generated investment decisions as deemed necessary by the Investment Adviser. To enhance targeted equity exposure and hedge the portfolio, the fund may utilize futures contracts, options on futures, and total return swaps. However, it's noted that during periods of market stability or decline, the put spread collar strategy may offer advantages, but in strong rising markets, it could lead to underperformance compared to portfolios without such options. The fund's fixed income investments are restricted to cash equivalents and U.S. Treasury Securities. It's important to highlight that the fund operates as an actively managed ETF, distinct from an index fund, with no intention to replicate any specific index's performance.
GDEF Dividend, as part of the Goldman Sachs Fund Complex, focuses on generating income for investors through dividend payments. The fund primarily invests in a diversified portfolio of equity securities and related instruments, aiming to allocate at least 80% of its net assets towards such investments. Employing a robust Put Spread Collar overlay strategy, GDEF Dividend purchases put options on indexes or ETFs at higher strike prices while writing put options at lower strike prices and selling call options on the same indexes or ETFs, providing downside protection. Additionally, the fund may utilize various quantitative techniques alongside a qualitative overlay for investment selection, allowing flexibility in decision-making. To enhance income generation and manage risk, GDEF Dividend may also employ futures contracts, options on futures, and total return swaps. While this strategy may offer advantages during periods of market stability or decline, it's important to note potential underperformance in strong rising markets compared to portfolios without such options. Fixed income investments within the fund are typically limited to cash equivalents and U.S. Treasury Securities. As an actively managed ETF within the Goldman Sachs Fund Complex, GDEF Dividend operates distinctively from index funds, focusing on income generation rather than replicating specific index performances.
GDEF Tracking, within the Goldman Sachs Fund Complex, is designed to closely track the performance of a specific index or benchmark. The fund primarily invests in a diversified portfolio of equity securities and related instruments, aiming to allocate at least 80% of its net assets towards such investments. Utilizing a sophisticated tracking methodology, GDEF Tracking employs a combination of quantitative techniques and qualitative overlays to replicate the performance of the target index as accurately as possible. The fund's investment decisions are driven by its adherence to the index's composition and weighting, with deviations from the index typically minimized. To mitigate tracking error and ensure alignment with the index, GDEF Tracking may employ a variety of strategies, including rebalancing, sampling, and optimization techniques. Fixed income investments within the fund are typically limited to cash equivalents and U.S. Treasury Securities. As an actively managed ETF within the Goldman Sachs Fund Complex, GDEF Tracking operates distinctively from index funds, with a primary focus on closely tracking the performance of its designated benchmark rather than generating income or outperforming the market.
GDEF Correlation, as part of the Goldman Sachs Fund Complex, aims to manage correlation risk by strategically investing in assets that have low or negative correlations with each other. The fund constructs a diversified portfolio comprising equity securities and related instruments, with a focus on allocating at least 80% of its net assets towards such investments. Employing sophisticated quantitative techniques and qualitative overlays, GDEF Correlation seeks to identify assets with low correlation to mitigate the impact of market volatility on the portfolio. Additionally, the fund may utilize hedging strategies, including options, futures contracts, and total return swaps, to further manage correlation risk. By diversifying across assets with different risk and return profiles, GDEF Correlation aims to provide investors with a smoother risk-adjusted return stream. Fixed income investments within the fund are typically limited to cash equivalents and U.S. Treasury Securities. As an actively managed ETF within the Goldman Sachs Fund Complex, GDEF Correlation operates distinctively from index funds, focusing on managing correlation risk rather than tracking a specific benchmark or generating income.
GDEF Sector, within the Goldman Sachs Fund Complex, specializes in sector-focused investing, aiming to capitalize on opportunities within specific segments of the market. The fund constructs a diversified portfolio comprising equity securities and related instruments, with a particular emphasis on sectors exhibiting favorable growth prospects or undervalued assets. Allocating at least 80% of its net assets towards such investments, GDEF Sector employs a combination of quantitative techniques and qualitative overlays to identify promising sectors and individual securities within those sectors. The fund's investment decisions are driven by thorough sector analysis, including macroeconomic trends, industry dynamics, and company fundamentals. By focusing on sector-specific opportunities, GDEF Sector aims to achieve enhanced returns while effectively managing sector-specific risks. Fixed income investments within the fund are typically limited to cash equivalents and U.S. Treasury Securities. As an actively managed ETF within the Goldman Sachs Fund Complex, GDEF Sector operates distinctively from index funds, prioritizing sector selection and allocation over tracking a broad market index.
GDEF Exposure, as part of the Goldman Sachs Fund Complex, specializes in providing investors with exposure to targeted market segments or investment themes. The fund constructs a diversified portfolio comprising equity securities and related instruments, with a focus on allocating at least 80% of its net assets towards such investments. Utilizing sophisticated quantitative techniques and qualitative overlays, GDEF Exposure identifies specific market segments or investment themes that are expected to outperform the broader market. The fund's investment strategy may involve overweighting or underweighting certain sectors, industries, or asset classes to achieve desired exposure. Additionally, GDEF Exposure may utilize derivatives, such as futures contracts, options, and swaps, to enhance or adjust its exposure efficiently. By strategically allocating capital to targeted market segments or investment themes, GDEF Exposure aims to provide investors with the potential for enhanced returns while effectively managing risk. Fixed income investments within the fund are typically limited to cash equivalents and U.S. Treasury Securities. As an actively managed ETF within the Goldman Sachs Fund Complex, GDEF Exposure operates distinctively from index funds, prioritizing exposure to specific market segments or investment themes over tracking a broad market index.
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6 min readCompare the WCLD and BOTZ ETFs with our thorough analysis. Dive into the performance metrics, underlying assets, and investment strategies.
5 min readCompare the EWZ and IWM ETFs with our thorough analysis. Dive into the performance metrics, underlying assets, and investment strategies.
6 min readThe GDEF ETF is a specialized investment fund that focuses on a specific sector. This exchange-traded fund offers investors exposure to a range of companies in this sector.
ETF Insider is a novel portfolio optimization tool that uses the power of data visualization to gain insight into portfolio compositions, concentration risks, portfolio efficiency and more. Complex financial data can be transformed into visually appealing and easily digestible graphs and charts, allowing investors to quickly identify trends and make well-informed investment decisions. Not only does this save time, but it also increases the accuracy and effectiveness of portfolio management.
