Should Goldman Sachs ActiveBeta U.S. Small Cap Equity ETF (GSSC) Be on Your Investing Radar?

Looking for broad exposure to the Small Cap Blend segment of the US equity market? You should consider the Goldman Sachs ActiveBeta U.S. Small Cap Equity ETF (GSSC), a passively managed exchange traded fund launched on June 28, 2017.The fund is sponsored by Goldman Sachs Funds. It has amassed assets over $732.29 million, making it one of the average sized ETFs attempting to match the Small Cap Blend segment of the US equity market.Why Small Cap BlendSitting at a market capitalization below $2 billion, small cap companies tend to be high-potential stocks compared to its large and mid cap counterparts, but come with higher risk.Typically holding a combination of both growth and value stocks, blend ETFs also demonstrate qualities seen in value and growth investments. CostsInvestors should also pay attention to an ETF's expense ratio. Lower cost products will produce better results than those with a higher cost, assuming all other metrics remain the same.Annual operating expenses for this ETF are 0.2%, putting it on par with most peer products in the space.It has a 12-month trailing dividend yield of 1.42%.Sector Exposure and Top HoldingsETFs 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 19.8% of the portfolio. Industrials and Healthcare round out the top three.Looking at individual holdings, Cmrc/cme Eminirus2k 12/2025 (RTYZ5) accounts for about 0.51% of total assets, followed by Credo Technology Group Holding Ltd (CRDO) and Ies Holdings Inc. (IESC).The top 10 holdings account for about 3.73% of total assets under management.Performance and RiskGSSC seeks to match the performance of the Goldman Sachs ActiveBeta U.S. Small Cap Equity Index before fees and expenses. The Goldman Sachs ActiveBeta U.S. Small Cap Equity Index is designed to deliver exposure to equity securities of small capitalization U.S. issuers.The ETF has added roughly 11.11% so far this year and is up roughly 2.76% in the last one year (as of 12/09/2025). In the past 52-week period, it has traded between $55.86 and $76.75.The ETF has a beta of 1.03 and standard deviation of 20.43% for the trailing three-year period. With about 1339 holdings, it effectively diversifies company-specific risk.AlternativesGoldman Sachs ActiveBeta U.S. Small Cap 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, GSSC is a reasonable option for those seeking exposure to the Style Box - Small Cap Blend area of the market. Investors might also want to consider some other ETF options in the space.The iShares Russell 2000 ETF (IWM) and the iShares Core S&P Small-Cap ETF (IJR) track a similar index. While iShares Russell 2000 ETF has $72.68 billion in assets, iShares Core S&P Small-Cap ETF has $88.45 billion. IWM has an expense ratio of 0.19% and IJR charges 0.06%.Bottom-LineRetail and institutional investors increasingly turn to passively managed ETFs because they offer low costs, transparency, flexibility, and tax efficiency; these kind of funds 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.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