Is Goldman Sachs ActiveBeta U.S. Small Cap Equity ETF (GSSC) a Strong ETF Right Now?

The Goldman Sachs ActiveBeta U.S. Small Cap Equity ETF (GSSC) made its debut on 06/28/2017, and is a smart beta exchange traded fund that provides broad exposure to the Style Box - Small Cap Blend category of the market.What Are Smart Beta ETFs?Products that are based on market cap weighted indexes, which are strategies designed to reflect a specific market segment or the market as a whole, have traditionally dominated the ETF industry.Because market cap weighted indexes provide a low-cost, convenient, and transparent way of replicating market returns, they work well for investors who believe in market efficiency.But, there are some investors who would rather invest in smart beta funds; these funds track non-cap weighted strategies, and are a strong option for those who prefer choosing great stocks in order to beat the market.By attempting to pick stocks that have a better chance of risk-return performance, non-cap weighted indexes are based on certain fundamental characteristics, or a combination of such.This area offers many different investment choices, such as simplest equal-weighting, fundamental weighting and volatility/momentum based weighting methodologies; however, not all of these strategies can deliver superior results.Fund Sponsor & IndexThe fund is managed by Goldman Sachs Funds. GSSC has been able to amass assets over $731.61 million, making it one of the average sized ETFs in the Style Box - Small Cap Blend. GSSC, before fees and expenses, seeks to match the performance of the Goldman Sachs ActiveBeta U.S. Small Cap Equity Index.The Goldman Sachs ActiveBeta U.S. Small Cap Equity Index is designed to deliver exposure to equity securities of small capitalization U.S. issuers.Cost & Other ExpensesFor ETF investors, expense ratios are an important factor when considering a fund's return; in the long-term, cheaper funds actually have the ability to outperform their more expensive cousins if all other things remain the same.Operating expenses on an annual basis are 0.20% for GSSC, making it on par with most peer products in the space.It's 12-month trailing dividend yield comes in at 1.17%.Sector Exposure and Top HoldingsETFs offer 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.GSSC's heaviest allocation is in the Financials sector, which is about 20.3% of the portfolio. Its Healthcare and Industrials round out the top three.Taking into account individual holdings, Cmrc/cme Eminirus2k 12/2025 (RTYZ5) accounts for about 1.02% of the fund's total assets, followed by Credo Technology Group Holding Ltd (CRDO) and Ies Holdings Inc. (IESC).Its top 10 holdings account for approximately 4.19% of GSSC's total assets under management.Performance and RiskThe ETF has added about 11.45% so far this year and is up about 11.66% in the last one year (as of 12/31/2025). In the past 52-week period, it has traded between $55.86 and $78.67The fund has a beta of 1.03 and standard deviation of 20.31% for the trailing three-year period. With about 1335 holdings, it effectively diversifies company-specific risk .AlternativesGoldman Sachs ActiveBeta U.S. Small Cap Equity ETF is a reasonable option for investors seeking to outperform the Style Box - Small Cap Blend segment of the market. However, there are other ETFs in the space which investors could consider.iShares Russell 2000 ETF (IWM) tracks Russell 2000 Index and the iShares Core S&P Small-Cap ETF (IJR) tracks S&P SmallCap 600 Index. iShares Russell 2000 ETF has $74.89 billion in assets, iShares Core S&P Small-Cap ETF has $89.32 billion. IWM has an expense ratio of 0.19% and IJR changes 0.06%.Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Style Box - Small Cap BlendBottom LineTo 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.Boost Your Portfolio with Our Top ETF InsightsZacks' exclusive Fund Newsletter delivers actionable information, top news and analysis, as well as top-performing ETFs, straight to your inbox every week.Don’t miss out on this valuable resource. It’s free!Get it now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Goldman Sachs ActiveBeta U.S. Small Cap Equity ETF (GSSC): ETF Research ReportsThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks