JAAA - GSST: This Goldman Fund Passed The April Meltdown Test

2025-05-11 23:25:00 ET

Summary

• GSST, a short-term bond fund, has demonstrated robust performance with minimal drawdowns, outperforming peers during the April 2025 market volatility.
• The fund's portfolio, comprising Treasuries, ABS, and investment-grade corporates, maintains an ultra-low duration of 0.5 years and a 4.5% SEC yield.
• Despite offering only a 20 bps excess yield over T-bills, GSST's strong risk management and stability make it a compelling buy.
• As the Fed cuts rates, GSST's yield may decrease, but its superior risk/reward profile justifies maintaining a 'Buy' rating.

Thesis

We started covering the Goldman Sachs Access Ultra Short Bond ETF (BATS: GSST ) last year, when we rated the name a 'Buy'. The fund has delivered since, providing for a robust and stable NAV, even when faced with the April 2025 market volatility....

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