GUMI

📎 Investment Objective

The Goldman Sachs Ultra Short Municipal Income ETF (GUMI) seeks to provide current income exempt from federal income tax by investing primarily in a portfolio of municipal bonds with very short maturities.

✨ Key Features

• Focuses on ultra-short term municipal bonds to generate tax-exempt income
• Maintains a weighted average maturity of 90 days or less to reduce interest rate risk
• Designed to provide stability and liquidity for investors seeking a low-risk, tax-efficient cash management solution
• Expense ratio of 0.00% makes it a low-cost option for municipal bond exposure

⚠️ Primary Risks

• Interest rate risk: As a short-term bond fund, GUMI is still subject to the risk of rising interest rates, which can negatively impact bond prices
• Credit risk: The fund is exposed to the risk of default or downgrade of the municipal bonds it holds
• Liquidity risk: The market for ultra-short municipal bonds may be less liquid than for longer-dated bonds, which could impact the fund's ability to sell holdings
• Tax risk: While the fund aims to provide tax-exempt income, changes in tax laws could affect the tax-exempt status of the municipal bonds

👤 Best For

GUMI may be suitable for investors seeking a low-risk, tax-efficient cash management solution or as a component of a diversified fixed income portfolio. The fund's focus on ultra-short municipal bonds makes it most appropriate for investors with a short-term investment horizon who are looking to generate tax-exempt income while minimizing interest rate risk.