If you're interested in broad exposure to the Large Cap Blend segment of the US equity market, look no further than the Goldman Sachs ActiveBeta U.S. Large Cap Equity ETF (
GSLC Quick Quote GSLC - Free Report) , a passively managed exchange traded fund launched on 09/17/2015.
The fund is sponsored by Goldman Sachs Funds. It has amassed assets over $13.83 billion, making it one of the largest ETFs attempting to match the Large Cap Blend segment of the US equity market.
Why Large Cap Blend
Large cap companies typically have a market capitalization above $10 billion. Overall, they are usually a stable option, with less risk and more sure-fire cash flows than mid and small cap companies.
Blend ETFs are aptly named, since they tend to hold a mix of growth and value stocks, as well as show characteristics of both kinds of equities.
When considering an ETF's total return, expense ratios are an important factor, and cheaper funds can significantly outperform their more expensive counterparts in the long term if all other factors remain equal.
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 1.05%.
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 Information Technology sector--about 29.10% of the portfolio. Consumer Discretionary and Healthcare round out the top three.
Looking at individual holdings, Apple Inc (
AAPL Quick Quote AAPL - Free Report) accounts for about 4.93% of total assets, followed by Microsoft Corp ( MSFT Quick Quote MSFT - Free Report) and Amazon.com Inc ( AMZN Quick Quote AMZN - Free Report) .
The top 10 holdings account for about 22.65% of total assets under management.
Performance and Risk
GSLC seeks to match the performance of the Goldman Sachs ActiveBeta U.S. Large Cap Equity Index before fees and expenses. The Goldman Sachs ActiveBeta U.S. Large Cap Equity Index is designed to deliver exposure to equity securities of large-capitalization U.S. issuers.
The ETF has added about 22.25% so far this year and is up roughly 31.10% in the last one year (as of 10/21/2021). In the past 52-week period, it has traded between $66.35 and $91.34.
The ETF has a beta of 0.98 and standard deviation of 22.51% for the trailing three-year period, making it a medium risk choice in the space. With about 459 holdings, it effectively diversifies company-specific risk.
Goldman Sachs ActiveBeta U.S. Large Cap Equity ETF holds a Zacks ETF Rank of 2 (Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, GSLC is an outstanding option for investors seeking exposure to the Style Box - Large Cap Blend segment of the market. There are other additional ETFs in the space that investors could consider as well.
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 $302.54 billion in assets, SPDR S&P 500 ETF has $407.35 billion. IVV has an expense ratio of 0.03% and SPY charges 0.09%. 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.