Goldman Sachs Asset Management (GSAM) has launched a new ETF on NYSE Arca. The Goldman Sachs JUST US Large Cap Equity ETF (JUST US) provides broad exposure to US large-cap equities, with a focus on companies that outperform on all major environmental, social and governance (ESG) issues critical to the American people.
The Goldman Sachs JUST US Large Cap Equity ETF invests in companies which focus on issues important to the American people.
Timothy J. O’Neill, co-head of Goldman Sachs’ Investment Management Division, commented, “JUST is an important financial product—it specifically promotes corporate practices and policies that society values. This focus allows investment to flow toward a more sustainable and equitable future, while seeking to generate attractive returns for investors.”
JUST tracks the JUST US Large Cap Diversified Index, derived from the Russell 1000. The index harnesses ESG metrics from New York-based JUST Capital – an independent nonprofit that uses data and markets to promote positive change in corporate behaviour.
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 key issues prioritized by the public.
Instead of a niche or single-issue approach, companies are ranked based on a broad range of categories, including worker issues, such as providing a living wage and workplace safety; customer concerns, such as privacy protection and truthful advertising; and environmental impacts, such as minimizing pollution and resource efficiency.
Companies in the Russel 1000 are ranked by their overall “just” score, and the top 50% by industry are selected and weighted by market cap, arriving at the final index composition.
Historically, companies in the JUST index on average have paid better, created more jobs, paid fewer fines, given twice as much to charity, emitted less greenhouse gas, and have had a higher return on equity compared with the rest of the Russell 1000.
Paul Tudor Jones, co-founder and chairman of JUST Capital, commented, “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.
“We have the unique opportunity to help shift resources toward companies driving change on the country’s most intractable social, environmental, and economic problems.”
The JUST ETF has a total expense ratio of 0.20% and trades in US dollars.