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 Equal Weight U.S. Large Cap Equity ETF (
GSEW Quick Quote GSEW - Free Report) , a passively managed exchange traded fund launched on 09/12/2017.
The fund is sponsored by Goldman Sachs Funds. It has amassed assets over $567.53 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
Large cap companies typically have a market capitalization above $10 billion. Considered a more stable option, large cap companies boast more predictable cash flows and are less volatile than their mid and small cap counterparts.
Typically holding a combination of both growth and value stocks, blend ETFs also demonstrate qualities seen in value and growth investments.
Cost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive counterparts if all other fundamentals are 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 1.80%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure which minimizes single stock risk, it is still important to look into a fund's holdings before investing. Luckily, 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 18.50% of the portfolio. Healthcare and Industrials round out the top three.
Looking at individual holdings, Coinbase Global Inc (
COIN Quick Quote COIN - Free Report) accounts for about 0.25% of total assets, followed by Zscaler Inc ( ZS Quick Quote ZS - Free Report) and Regeneron Pharmaceuticals Inc ( REGN Quick Quote REGN - Free Report) .
The top 10 holdings account for about 2.36% 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 has lost about -22.95% so far this year and is down about -19.71% in the last one year (as of 09/26/2022). In the past 52-week period, it has traded between $53.91 and $72.67.
The ETF has a beta of 1.05 and standard deviation of 25.49% for the trailing three-year period. With about 490 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 sufficient 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 $277.08 billion in assets, SPDR S&P 500 ETF has $334.48 billion. IVV has an expense ratio of 0.03% and SPY charges 0.09%. 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.