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Should Goldman Sachs MarketBeta U.S. 1000 Equity ETF (GUSA) Be on Your Investing Radar?

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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 - Free Report) , a passively managed exchange traded fund launched on 04/05/2022.

The fund is sponsored by Goldman Sachs Funds. It has amassed assets over $1.91 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 usually 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

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 0.11%, making it one of the least expensive products in the space.

It has a 12-month trailing dividend yield of 1.12%.

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 30.90% of the portfolio. Financials and Consumer Discretionary round out the top three.

Looking at individual holdings, Apple Inc (AAPL - Free Report) accounts for about 6.66% of total assets, followed by Nvidia Corp (NVDA - Free Report) and Microsoft Corp (MSFT - Free Report) .

The top 10 holdings account for about 33.6% 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 4.20% so far this year and is up about 27.16% in the last one year (as of 01/24/2025). In the past 52-week period, it has traded between $41.97 and $53.01.

The ETF has a beta of 1.01 and standard deviation of 17.20% for the trailing three-year period. With about 1011 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 iShares Core S&P 500 ETF (IVV - Free Report) and the SPDR S&P 500 ETF (SPY - Free Report) track a similar index. While iShares Core S&P 500 ETF has $610.05 billion in assets, SPDR S&P 500 ETF has $647.31 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.

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