Launched on 11/28/2023, the Goldman Sachs MarketBeta Russell 1000 Growth Equity ETF (GGUS) is a passively managed exchange traded fund designed to provide a broad exposure to the Large Cap Growth segment of the US equity market.
The fund is sponsored by Goldman Sachs Funds. It has amassed assets over $323.08 million, making it one of the average sized ETFs attempting to match the Large Cap Growth segment of the US equity market.
Large cap companies typically have a market capitalization above $10 billion. They tend to be stable companies with predictable cash flows and are usually less volatile than mid and small cap companies.
Growth stocks have higher than average sales and earnings growth rates. While these are expected to grow faster than the broader market, they also have higher valuations. Also, growth stocks are a type of equity that carries more risk compared to others. Even though growth stocks are more likely to outperform their value counterparts in strong bull markets, value stocks have a record of delivering better returns in almost all markets than growth stocks.
Investors should also pay attention to an ETF’s expense ratio. Lower cost products will produce better results than those with a higher cost, assuming all other metrics remain the same.
Annual operating expenses for this ETF are 0.12%, making it one of the least expensive products in the space.
It has a 12-month trailing dividend yield of 0.52%.
Even though ETFs offer diversified exposure which minimizes single stock risk, it is still important to look into a fund’s holdings before investing. 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 45.30% of the portfolio. Consumer Discretionary and Telecom round out the top three.
Looking at individual holdings, Apple Inc (AAPL) accounts for about 11.42% of total assets, followed by Nvidia Corp (NVDA) and Amazon.com Inc (AMZN).
The top 10 holdings account for about 48.62% of total assets under management.
GGUS seeks to match the performance of the RUSSELL 1000 GROWTH 40 ACT DLY CAPPED ID before fees and expenses. The Russell 1000 Growth 40 Act Daily Capped Index measures the performance of the large and mid-capitalization growth segment of U.S. equity issuers, with a capping methodology.
The ETF has gained about 35.86% so far this year and was up about 37.11% in the last one year (as of 12/18/2024). In the past 52-week period, it has traded between $40.83 and $56.97.
