Designed to provide broad exposure to the Large Cap Blend segment of the US equity market, the Goldman Sachs Equal Weight U.S. Large Cap Equity ETF (
GSEW Quick Quote GSEW - Free Report) is a passively managed exchange traded fund launched on 09/12/2017.
The fund is sponsored by Goldman Sachs Funds. It has amassed assets over $710.84 million, making it one of the larger ETFs attempting to match the Large Cap Blend segment of the US equity market.
Why Large Cap Blend
Companies that fall in the large cap category tend to have a market capitalization above $10 billion. They tend to be stable companies with predictable cash flows and are usually less volatile than mid and small cap companies.
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 0.09%, making it one of the least expensive products in the space.
It has a 12-month trailing dividend yield of 1.22%.
Sector Exposure and Top Holdings
It is important to delve into an ETF's holdings before investing despite the many upsides to these kinds of funds like diversified exposure, which minimizes single stock risk. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation to the Information Technology sector--about 18.70% of the portfolio. Healthcare and Industrials round out the top three.
Looking at individual holdings, Burlington Stores Inc (
BURL Quick Quote BURL - Free Report) accounts for about 0.23% of total assets, followed by Eog Resources Inc ( EOG Quick Quote EOG - Free Report) and Vistra Corp ( VST Quick Quote VST - Free Report) .
The top 10 holdings account for about 2.14% of total assets under management.
Performance and Risk
GSEW seeks to match the performance of the Solactive US Large Cap Equal Weight Index before fees and expenses. The Solactive US Large Cap Equal Weight Index is an equal-weight version of the Solactive US Large Cap Index including equity securities of approximately 500 of the largest U.S. companies.
The ETF return is roughly 12.84% so far this year and is up about 54.30% in the last one year (as of 04/12/2021). In the past 52-week period, it has traded between $40.27 and $64.04.
The ETF has a beta of 1.08 and standard deviation of 23.56% for the trailing three-year period. With about 503 holdings, it effectively diversifies company-specific risk.
Goldman Sachs Equal Weight U.S. Large 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, GSEW is a reasonable option for those seeking exposure to the Style Box - Large Cap Blend area of the market. Investors might also want to consider some other ETF options in the space.
The iShares Core S&P 500 ETF (
IVV Quick Quote IVV - Free Report) and the SPDR S&P 500 ETF ( SPY Quick Quote SPY - Free Report) track a similar index. While iShares Core S&P 500 ETF has $273.22 billion in assets, SPDR S&P 500 ETF has $357.60 billion. IVV has an expense ratio of 0.03% and SPY charges 0.09%. Bottom-Line
Retail and institutional investors increasingly turn to passively managed ETFs because they offer low costs, transparency, flexibility, and tax efficiency; these kind of funds 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.