Introducing the Goldman Sachs ActiveBeta U.S. Small Cap Equity ETF (GSSC) – A Smart Beta Approach to Small Cap Investing

Goldman Sachs ActiveBeta U.S. Small Cap Equity ETF (GSSC) made its debut on June 28, 2017, offering investors a unique opportunity to gain exposure to the Style Box – Small Cap Blend category of the market. This smart beta exchange-traded fund (ETF) is sponsored by Goldman Sachs Funds and seeks to replicate the performance of the Goldman Sachs ActiveBeta U.S. Small Cap Equity Index.

Smart beta ETFs, like GSSC, differ from traditional market capitalization-weighted indexes by utilizing non-cap weighted strategies. These strategies aim to select stocks based on specific fundamental characteristics or a combination of factors that have the potential to outperform the market. While market cap-weighted indexes are popular for their low-cost and transparent nature, smart beta ETFs cater to investors who believe in the possibility of beating the market through superior stock selection.

With assets totaling over $466.94 million, GSSC is considered an average-sized ETF in the Small Cap Blend category. The fund has an expense ratio of 0.20%, which is in line with its peers in the space. Additionally, GSSC boasts a 12-month trailing dividend yield of 1.41%, providing investors with a potential income stream.

Sector exposure is a crucial aspect to consider when investing in ETFs, and GSSC has its heaviest allocation in the Industrials sector, making up approximately 19.50% of the portfolio. Financials and Information Technology round out the top three sectors in terms of allocation. When looking at individual holdings, the fund’s top assets include Sep 23 Cme Eminirus2k (RTYU3), Emcor Group Inc (EME), and Atkore Inc (ATKR).

Performance-wise, GSSC has delivered solid returns, with a gain of about 5.03% year-to-date and approximately 6.60% over the last year as of September 19, 2023. The fund has a beta of 1 and a standard deviation of 22.13% for the trailing three-year period, effectively diversifying company-specific risk with its 1221 holdings.

While GSSC presents a compelling option for investors seeking exposure to the Small Cap Blend segment, there are alternative ETFs available in the market. For instance, iShares Russell 2000 ETF (IWM) and iShares Core S&P Small-Cap ETF (IJR) track different indexes within the small-cap space and offer varying expense ratios.

In conclusion, Goldman Sachs ActiveBeta U.S. Small Cap Equity ETF (GSSC) provides investors with a unique opportunity to access the Small Cap Blend category through a smart beta strategy. With its competitive expense ratio, diversified holdings, and solid performance track record, GSSC stands out as a strong contender in the ETF universe. Investors looking to explore this product further can visit Zacks ETF Center for more information and research reports.