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The Goldman Sachs ActiveBeta US Small Cap Equity ETF (GSSC) offers broad exposure to small-cap stocks with Goldman’s multi-factor twist. GSSC tracks a proprietary index that takes a multi-factor approach, looking for stocks that exhibit good value, strong momentum, high quality, and low volatility. Top holdings include Trex, Deckers Outdoor and Boston Beer Company.
The case for investing in small companies is the growth potential compared to mega-cap stocks that may have already hit their peak. The downside is that small companies also come with a fair amount of risk. Changes in regulations, economic circumstances, or access to credit could send share prices tumbling. While some exposure to small companies is standard for many portfolios, investors should avoid the risk of leaning too heavily on a notably volatile segment.
GSSC is reasonably priced for a multi-factor ETF, though more expensive than the iShares Core S&P Small-Cap ETF (IJR), the plain-vanilla index ETF that is among the biggest in the small-cap segment. There are other differences besides cost. GSSC owns more than twice as many stocks as IJR. It also has a smaller slice of its portfolio invested in micro-cap stocks. Does Goldman’s factor twist work? There’s limited performance history to go on since GSSC was launched in mid-2017, but it did outperform IJR during the pandemic turmoil of the first five months of 2020.
Historical Trading Data
1 Month Avg. Volume20,739
3 Month Avg. Volume20,265
Alternative ETFs in the Small Cap Growth Equities Category
5 Day Net Flows:
2.26 M
1 Month Net Flows:
6.41 M
3 Month Net Flows:
17.27 M
6 Month Net Flows:
66.57 M
1 Year Net Flows:
57.45 M
3 Year Net Flows:
144.24 M
5 Year Net Flows:
146.11 M
10 Year Net Flows:
146.11 M
Realtime Rating
The adjacent table gives investors an individual Realtime Rating for GSSC on several different metrics, including liquidity, expenses, performance, volatility, dividend, concentration of holdings in addition to an overall rating. The "A+ Metric Rated ETF" field, available to ETFdb Pro members, shows the ETF in the Small Cap Growth Equities with the highest Metric Realtime Rating for each individual field. To view all of this data, sign up for a free 14-day trial for ETFdb Pro. To view information on how the ETFdb Realtime Ratings work, click here.
Copyright MSCI ESG Research LLC [2018]. All Rights Reserved. MSCI ESG Research LLC’s (“MSCI ESG”) Fund Metrics products (the “Information”) provide environmental, social and governance data with respect to underlying securities within more than 23,000 multi-asset class Mutual Funds and ETFs globally. MSCI ESG is a Registered Investment Adviser under the Investment Advisers Act of 1940. MSCI ESG materials have not been submitted, to nor received approval from, the US SEC or any other regulatory body. None of the information constitutes an offer to buy or sell, or a promotion or recommendation of, any security, financial instrument or product or trading strategy, nor should it be taken as an indication or guarantee of any future performance, analysis, forecast or prediction. None of the Information can be used to determine which securities to buy or sell or when to buy or sell them. The Information is provided “as is” and the user of the Information assumes the entire risk of any use it may make or permit to be made of the Information. All Information is provided solely for your internal use, and may not be reproduced or redisseminated in any form without express prior written permission from MSCI. Neither MSCI ESG nor any of its affiliates or any third party involved in or related to creating any Information makes any express or implied warranties, representations or guarantees, and in no event will MSCI ESG or any such affiliate or third party have any liability for any direct, indirect, special, punitive, consequential or any other damages (including lost profits) relating to any Information. More information on MSCI ESG Fund Metrics, provided by MSCI ESG Research LLC, can be found at https://www.msci.com/esg-fund-metrics.
Information is provided 'as is' and solely for informational purposes, not for trading purposes or advice, and is delayed. To see all exchange delays and terms of use, please see disclaimer.
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