If you're interested in broad exposure to the Large Cap Value segment of the US equity market, look no further than the Goldman Sachs MarketBeta Russell 1000 Value Equity ETF (GVUS), a passively managed exchange traded fund launched on 11/28/2023.
The fund is sponsored by Goldman Sachs Funds. It has amassed assets over $501.71 million, making it one of the average sized ETFs attempting to match the Large Cap Value segment of the US equity market.
Companies that find themselves in the large cap category typically have a market capitalization above $10 billion. Overall, they are usually a stable option, with less risk and more sure-fire cash flows than mid and small cap companies.
Value stocks have lower than average price-to-earnings and price-to-book ratios. They also have lower than average sales and earnings growth rates. Looking at their long-term performance, value stocks have outperformed growth stocks in almost all markets. They are however likely to underperform growth stocks in strong bull markets.
Cost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive counterparts if all other fundamentals are 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 1.43%.
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 Financials sector--about 23.10% of the portfolio. Industrials and Healthcare round out the top three.
Looking at individual holdings, Berkshire Hathaway Inc (BRK/B) accounts for about 3.32% of total assets, followed by Jpmorgan Chase & Co (JPM) and Exxon Mobil Corp (XOM).
The top 10 holdings account for about 17.37% of total assets under management.
GVUS seeks to match the performance of the RUSSELL 1000 VALUE 40 ACT DAILY CAP ID before fees and expenses. The Russell 1000 Value 40 Act Daily Capped Index measures the performance of the large and mid-capitalization value segment of U.S. equity issuers, with a capping methodology.
The ETF has added roughly 16.43% so far this year and is up about 17.90% in the last one year (as of 12/18/2024). In the past 52-week period, it has traded between $41.69 and $51.40.
With about 865 holdings, it effectively diversifies company-specific risk.