Designed to provide broad exposure to the Large Cap Growth segment of the US equity market, the Goldman Sachs MarketBeta Russell 1000 Growth Equity ETF (GGUS) is a passively managed exchange traded fund launched on 11/28/2023.
The fund is sponsored by Goldman Sachs Funds. It has amassed assets over $263.93 million, making it one of the average sized ETFs attempting to match the Large Cap Growth segment of the US equity market.
Why Large Cap Growth
Large cap companies 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.
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. Something to keep in mind is the higher level of volatility that is affiliated with growth stocks. They are likely to outperform value stocks in strong bull markets but over the longer-term, value stocks have delivered better returns than growth stocks in almost all 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 0.76%.
Sector Exposure and Top Holdings
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 Information Technology sector--about 40.70% of the portfolio. Consumer Discretionary and Telecom round out the top three.
Looking at individual holdings, Apple Inc (AAPL) accounts for about 8.14% of total assets, followed by Microsoft Corp (MSFT) and Nvidia Corp (NVDA).
The top 10 holdings account for about 46.44% of total assets under management.
Performance and Risk
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 lost about -13.71% so far this year and was up about 7.18% in the last one year (as of 04/21/2025). In the past 52-week period, it has traded between $43.73 and $56.97.
The ETF has a beta of 1.16 and standard deviation of 20.73% for the trailing three-year period. With about 391 holdings, it effectively diversifies company-specific risk.
Alternatives
Goldman Sachs MarketBeta Russell 1000 Growth Equity ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, GGUS is a sufficient option for those seeking exposure to the Style Box - Large Cap Growth area of the market. Investors might also want to consider some other ETF options in the space.
The Vanguard Growth ETF (VUG) and the Invesco QQQ (QQQ) track a similar index. While Vanguard Growth ETF has $137.58 billion in assets, Invesco QQQ has $284.68 billion. VUG has an expense ratio of 0.04% and QQQ charges 0.20%.
Bottom-Line
An increasingly popular option among retail and institutional investors, passively managed ETFs offer low costs, transparency, flexibility, and tax efficiency; they are also 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 Growth Equity ETF (GGUS): ETF Research Reports Apple Inc. (AAPL): Free Stock Analysis Report Microsoft Corporation (MSFT): Free Stock Analysis Report NVIDIA Corporation (NVDA): Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports Vanguard Growth ETF (VUG): ETF Research ReportsThis article originally published on Zacks Investment Research (zacks.com).
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