It tracks the Solactive GBS Developed Markets ex North America Large & Mid Cap Index and spreads its investments across about 900 companies in major developed countries such as those in Europe, Japan, and Australia.

It suits long-term investors who want to increase their allocation to developed-market stocks outside the US at a low cost.

Goldman Sachs launched it in 2020 as a passively managed (index-tracking) ETF.

Using a market-capitalization-weighted approach, the fund holds a large number of companies that account for the top share of total market capitalization in the target countries. It aims to efficiently replicate the beta returns of developed markets.

• Goldman Sachs' competitive low-fee structure
• Broad exposure to developed markets

Assets under management (AUM) stand at $974.7M, and the expense ratio is 0.20% per year.

Compared with peer ETFs such as VEA and IEFA, it is sufficiently competitive on fees, making it a good choice as a core holding.

Returns tend to fluctuate with expectations of a global economic recovery and the monetary policy stance of major developed countries. The fund has posted positive results in particular during periods when Japanese and European equities were relatively strong.

Demand to diversify portfolios that are heavily concentrated in US stocks continues, and steady inflows have followed. Fund flows tend to strengthen when the valuation advantages of developed markets come into focus.

Its strength is that it allows investment across international developed markets at a low cost, but it can be exposed to volatility in specific countries or sectors.

VEA and IEFA, shown in the table, are representative international developed-market ETFs and are very similar in character to GSID. If you want broader global equity exposure, VXUS, which also includes emerging markets, or VT, which covers the entire world, could be alternatives. Meanwhile, if you prefer Morgan Stanley's traditional index even at a somewhat higher cost, you could also consider EFA.

Here are three key checkpoints to consider carefully when investing in GSID. You should weigh the growth potential of developed markets outside the US together with the product's cost efficiency, and review whether it fits your portfolio diversification goals.

International developed markets may offer lower growth than the US, and exchange rate movements act as a major variable for returns. There is also a risk of declining together if a specific country faces an economic crisis.

It is a core ETF suited to investors seeking international portfolio diversification at a low cost. It is a good tool for lowering correlation with US stocks and enjoying long-term asset allocation benefits.