Goldman Sachs' Smart Beta ETF: A Diversification Option in the Small-Cap Sector

The Goldman Sachs ActiveBeta U.S. Small Cap Equity ETF (GSSC) made its debut on June 28, 2017, and provides investors with broad diversification in the style box - small cap blend category. Traditionally, capitalization-weighted indexes have dominated the ETF landscape, designed to reflect the market or specific market segments. These products are known for their efficiency, cost savings, and transparency. However, a growing number of investors prefer funds that follow so-called "smart beta" strategies. These seek to outperform the market through strategic stock selection and are based not on market capitalization, but on fundamental company characteristics. Managed by Goldman Sachs, the GSSC has a volume of over $515 million, making it an average-sized ETF in its category. The fund's annual operating expenses are 0.20%, which is within the range of similar products. Notably, it offers a 12-month dividend yield of 1.23%. The ETF places a strong emphasis on transparency, disclosing its positions daily. The financial sector has the highest weighting at 19.30%, followed by industrials and healthcare. Within the fund, Sprouts Farmers Market, Mueller Industries, and Jackson Financial are among the largest individual positions. So far this year, the ETF has achieved a return of 11.20% and has gained approximately 30.16% over one year. This performance indicates that GSSC is an attractive option for investors looking to outperform in the small-cap area, although there are numerous alternative choices available. For a better understanding of ETFs and current developments in ETF investments, consulting specialized research centers is recommended.