An Investor's Look at Goldman Sachs MarketBeta U.S. 1000 Equity ETF (GUSA)

Debuted on April 5, 2022, the Goldman Sachs MarketBeta U.S. 1000 Equity ETF (GUSA) is a passive investment vehicle targeting the expansive segment of large cap blend stocks within the U.S. equity market.

Understanding the Large Cap Blend Category

Typically, large cap companies boast a market capitalization exceeding $10 billion, making them relatively stable investment candidates due to their established business models and consistent cash flows. What sets Large Cap Blend ETFs apart is their combination of both growth and value stocks, offering a balanced mix to investors.

The Economical Nature of GUSA

An essential consideration for investors is the cost associated with ETFs, commonly measured by the expense ratio. With an annual operating expense of only 0.11%, GUSA stands as one of the more economical offerings in its class. Investors may also be drawn to its 1.37% dividend yield over the past year.

Inside GUSA's Portfolio

Diving into the fund's composition reveals a strong tilt towards the Information Technology sector, making up roughly 28.20% of investments. The fund's top individual stocks include prominent players like Apple Inc., Microsoft Corp., and Amazon.com Inc., which combined, represent a significant portion of its asset allocation.

Performance Metrics

GUSA aims to replicate the performance of the SOLACTIVE GBS US 1000 INDEX, covering a broad spectrum of the 1,000 largest U.S. companies by market cap. Despite a slight year-to-date dip, the ETF has increased by approximately 25.62% in the past year. It's trading range within the previous 52-week period has been between $32.89 and $41.47.

In terms of risk, GUSA holds a beta close to 1.01, signifying that its volatility is closely aligned with the market. It also maintains a diverse set of over 1,000 holdings, which mitigates the risk associated with individual securities.

Considering Alternatives

Those interested in the Large Cap Blend segment might also explore other ETFs such as the iShares Core S&P 500 ETF (IVV) or the SPDR S&P 500 ETF (SPY), both of which track similar indexes to GUSA, although with different assets under management and fee structures.

The Takeaway

GUSA represents a viable option due to growing popularity of passive ETFs that offer transparency, flexibility, and a potential for efficient tax management. It serves as a fund suitable for individuals looking at long-term investments.

ETFs, Investing, GUSA