Looking for broad exposure to the Large Cap Blend segment of the US equity market? You should consider the Goldman Sachs MarketBeta U.S. 1000 Equity ETF (GUSA), a passively managed exchange traded fund launched on 04/05/2022.
The fund is sponsored by Goldman Sachs Funds. It has amassed assets over $1.85 billion, 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.
Blend ETFs usually hold a mix of growth and value stocks as well as stocks that exhibit both value and growth characteristics.
Costs
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 0.11%, making it one of the least expensive products in the space.
It has a 12-month trailing dividend yield of 1.15%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure that minimizes single stock risk, investors should also look at the actual holdings inside the fund. 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 30.20% of the portfolio. Financials and Consumer Discretionary round out the top three.
Looking at individual holdings, Nvidia Corp (NVDA) accounts for about 6.21% of total assets, followed by Apple Inc (AAPL) and Microsoft Corp (MSFT).
The top 10 holdings account for about 31.41% of total assets under management.
Performance and Risk
GUSA seeks to match the performance of the SOLACTIVE GBS US 1000 INDEX before fees and expenses. The Solactive GBS United States 1000 Index measures the performance of equity securities of large and mid-capitalization equity issuers covering approximately the largest 1,000 of the free-float market capitalization in the United States.
The ETF has added about 25.50% so far this year and was up about 32.33% in the last one year (as of 11/21/2024). In the past 52-week period, it has traded between $39.39 and $52.04.
The ETF has a beta of 1.01 and standard deviation of 17.49% for the trailing three-year period. With about 1013 holdings, it effectively diversifies company-specific risk.
Alternatives
Goldman Sachs MarketBeta U.S. 1000 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, GUSA is an excellent 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 Vanguard S&P 500 ETF (VOO) and the SPDR S&P 500 ETF (SPY) track a similar index. While Vanguard S&P 500 ETF has $558.46 billion in assets, SPDR S&P 500 ETF has $631.82 billion. VOO has an expense ratio of 0.03% and SPY charges 0.09%.
Bottom-Line
While an excellent vehicle for long term investors, passively managed ETFs are a popular choice among institutional and retail investors due to their low costs, transparency, flexibility, and tax efficiency.
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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SPDR S&P 500 ETF (SPY): ETF Research Reports
Vanguard S&P 500 ETF (VOO): ETF Research Reports
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