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 Quick Quote GSSC - Free Report) 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 $372.27 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
Small cap companies have market capitalization below $2 billion. They usually have higher potential than large and mid cap companies with stocks but higher risk.
Typically holding a combination of both growth and value stocks, blend ETFs also demonstrate qualities seen in value and growth investments.
Expense ratios are an important factor in the return of an ETF and in the long term, cheaper funds can significantly outperform their more expensive counterparts, other things remaining the same.
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 0.77%.
Sector Exposure and Top Holdings
ETFs offer a diversified exposure and thus minimize single stock risk but it is still important to delve into a fund's holdings before investing. Most ETFs are very transparent products and many disclose their holdings on a daily basis.
This ETF has heaviest allocation to the Financials sector--about 16.90% of the portfolio. Industrials and Healthcare round out the top three.
Looking at individual holdings, Usd U.s. Dollar (
USD Quick Quote USD - Free Report) accounts for about 3.80% of total assets, followed by Redfin Corp ( RDFN Quick Quote RDFN - Free Report) and Irhythm Technologies Inc ( IRTC Quick Quote IRTC - Free Report) .
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 return is roughly 21.73% so far this year and it's up approximately 109.67% in the last one year (as of 03/18/2021). In the past 52-week period, it has traded between $28.45 and $65.96.
The ETF has a beta of 0.99 and standard deviation of 27.42% for the trailing three-year period. With about 1475 holdings, it effectively diversifies company-specific risk.
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 good 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 Quick Quote IJR - Free Report) and the iShares Russell 2000 ETF ( IWM Quick Quote IWM - Free Report) track a similar index. While iShares Core S&P SmallCap ETF has $71.75 billion in assets, iShares Russell 2000 ETF has $74.45 billion. IJR has an expense ratio of 0.06% and IWM charges 0.19%. Bottom-Line
Passively managed ETFs are becoming increasingly popular with institutional as well as retail investors due to their low cost, transparency, flexibility and tax efficiency. They are 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.