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 $343.36 million, making it one of the average sized ETFs attempting to match the Large Cap Value segment of the US equity market.
Why Large Cap Value
Large cap companies usually 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.
While 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. Value stocks have outperformed growth stocks in nearly all markets when you consider long-term performance, growth stocks are more likely to outpace value stocks in strong bull markets.
Costs
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 2.11%.
Sector Exposure and Top Holdings
It is important to delve into an ETF's holdings before investing despite the many upsides to these kinds of funds like diversified exposure, which minimizes single stock risk. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation to the Financials sector--about 23.20% of the portfolio. Healthcare and Industrials round out the top three.
Looking at individual holdings, Berkshire Hathaway Inc (BRK/B) accounts for about 3.89% of total assets, followed by Jpmorgan Chase & Co (JPM) and Exxon Mobil Corp (XOM).
The top 10 holdings account for about 17.92% of total assets under management.
Performance and Risk
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 lost about -4.16% so far this year and was up about 6.13% in the last one year (as of 04/21/2025). In the past 52-week period, it has traded between $42.82 and $51.40.
The ETF has a beta of 0.88 and standard deviation of 14.34% for the trailing three-year period. With about 864 holdings, it effectively diversifies company-specific risk.
Alternatives
Goldman Sachs MarketBeta Russell 1000 Value Equity ETF holds a Zacks ETF Rank of 2 (Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, GVUS is an outstanding option for investors seeking exposure to the Style Box - Large Cap Value segment of the market. There are other additional ETFs in the space that investors could consider as well.
The Schwab U.S. Dividend Equity ETF (SCHD) and the Vanguard Value ETF (VTV) track a similar index. While Schwab U.S. Dividend Equity ETF has $65.83 billion in assets, Vanguard Value ETF has $126.29 billion. SCHD has an expense ratio of 0.06% and VTV charges 0.04%.
Bottom-Line
Passively managed ETFs are becoming increasingly popular with institutional as well as retail investors due to their low cost, transparency, flexibility and tax efficiency. They are excellent vehicles for long term investors.
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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Goldman Sachs MarketBeta Russell 1000 Value Equity ETF (GVUS): ETF Research Reports JPMorgan Chase & Co. (JPM): Free Stock Analysis Report Exxon Mobil Corporation (XOM): Free Stock Analysis Report Vanguard Value ETF (VTV): ETF Research Reports Schwab U.S. Dividend Equity ETF (SCHD): ETF Research ReportsThis article originally published on Zacks Investment Research (zacks.com).
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