Designed to provide broad exposure to the Small Cap Blend segment of the US equity market, the Goldman Sachs ActiveBeta U.S. Small Cap Equity ETF (GSSC) is a passively managed exchange traded fund launched on 06/28/2017.
The fund is sponsored by Goldman Sachs Funds. It has amassed assets over $271.63 million, making it one of the average sized ETFs attempting to match the Small Cap Blend segment of the US equity market.
Why Small Cap Blend
Sitting at a market capitalization below $2 billion, small cap companies tend to be high-potential stocks compared to its large and mid cap counterparts, but come with higher risk.
Blend ETFs usually hold a mix of growth and value stocks as well as stocks that exhibit both value and growth characteristics.
Costs
Since cheaper funds tend to produce better results than more expensive funds, assuming all other factors remain equal, it is important for investors to pay attention to an ETF's expense ratio.
Annual operating expenses for this ETF are 0.20%, putting it on par with most peer products in the space.
It has a 12-month trailing dividend yield of 0.86%.
Sector Exposure and Top Holdings
While ETFs offer diversified exposure, which minimizes single stock risk, a deep look into a fund's holdings is a valuable exercise. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
Looking at individual holdings, Usd U.s. Dollar (USD) accounts for about 3.80% of total assets, followed by Redfin Corp (RDFN) and Irhythm Technologies Inc (IRTC).
The top 10 holdings account for about 6.85% of total assets under management.
Performance and Risk
GSSC seeks to match the performance of the Goldman Sachs ActiveBeta U.S. Small Cap Equity Index before fees and expenses. The Goldman Sachs ActiveBeta U.S. Small Cap Equity Index is designed to deliver exposure to equity securities of small capitalization U.S. issuers.
The ETF has added about 10.07% so far this year and was up about 29.77% in the last one year (as of 02/02/2021). In the past 52-week period, it has traded between $28.45 and $59.65.
The ETF has a beta of 0.99 and standard deviation of 27.20% for the trailing three-year period. With about 1475 holdings, it effectively diversifies company-specific risk.
Alternatives
Goldman Sachs ActiveBeta U.S. Small Cap Equity ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, GSSC is a reasonable option for those seeking exposure to the Style Box - Small Cap Blend area of the market. Investors might also want to consider some other ETF options in the space.
The iShares Core S&P SmallCap ETF (IJR) and the iShares Russell 2000 ETF (IWM) track a similar index. While iShares Core S&P SmallCap ETF has $61.63 billion in assets, iShares Russell 2000 ETF has $63.41 billion. IJR has an expense ratio of 0.06% and IWM charges 0.19%.
Bottom-Line
An increasingly popular option among retail and institutional investors, passively managed ETFs offer low costs, transparency, flexibility, and tax efficiency; they are also excellent vehicles for long term investors.
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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Should Goldman Sachs ActiveBeta U.S. Small Cap Equity ETF (GSSC) Be on Your Investing Radar?
Designed to provide broad exposure to the Small Cap Blend segment of the US equity market, the Goldman Sachs ActiveBeta U.S. Small Cap Equity ETF (GSSC) is a passively managed exchange traded fund launched on 06/28/2017.
The fund is sponsored by Goldman Sachs Funds. It has amassed assets over $271.63 million, making it one of the average sized ETFs attempting to match the Small Cap Blend segment of the US equity market.
Why Small Cap Blend
Sitting at a market capitalization below $2 billion, small cap companies tend to be high-potential stocks compared to its large and mid cap counterparts, but come with higher risk.
Blend ETFs usually hold a mix of growth and value stocks as well as stocks that exhibit both value and growth characteristics.
Costs
Since cheaper funds tend to produce better results than more expensive funds, assuming all other factors remain equal, it is important for investors to pay attention to an ETF's expense ratio.
Annual operating expenses for this ETF are 0.20%, putting it on par with most peer products in the space.
It has a 12-month trailing dividend yield of 0.86%.
Sector Exposure and Top Holdings
While ETFs offer diversified exposure, which minimizes single stock risk, a deep look into a fund's holdings is a valuable exercise. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
Looking at individual holdings, Usd U.s. Dollar (USD) accounts for about 3.80% of total assets, followed by Redfin Corp (RDFN) and Irhythm Technologies Inc (IRTC).
The top 10 holdings account for about 6.85% of total assets under management.
Performance and Risk
GSSC seeks to match the performance of the Goldman Sachs ActiveBeta U.S. Small Cap Equity Index before fees and expenses. The Goldman Sachs ActiveBeta U.S. Small Cap Equity Index is designed to deliver exposure to equity securities of small capitalization U.S. issuers.
The ETF has added about 10.07% so far this year and was up about 29.77% in the last one year (as of 02/02/2021). In the past 52-week period, it has traded between $28.45 and $59.65.
The ETF has a beta of 0.99 and standard deviation of 27.20% for the trailing three-year period. With about 1475 holdings, it effectively diversifies company-specific risk.
Alternatives
Goldman Sachs ActiveBeta U.S. Small Cap Equity ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, GSSC is a reasonable option for those seeking exposure to the Style Box - Small Cap Blend area of the market. Investors might also want to consider some other ETF options in the space.
The iShares Core S&P SmallCap ETF (IJR) and the iShares Russell 2000 ETF (IWM) track a similar index. While iShares Core S&P SmallCap ETF has $61.63 billion in assets, iShares Russell 2000 ETF has $63.41 billion. IJR has an expense ratio of 0.06% and IWM charges 0.19%.
Bottom-Line
An increasingly popular option among retail and institutional investors, passively managed ETFs offer low costs, transparency, flexibility, and tax efficiency; they are also excellent vehicles for long term investors.
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.