Is Goldman Sachs Equal Weight U.S. Large Cap Equity ETF (GSEW) a Strong ETF Right Now?

A smart beta exchange traded fund, the Goldman Sachs Equal Weight U.S. Large Cap Equity ETF (GSEW) debuted on 09/12/2017, and offers broad exposure to the Style Box - Large Cap Blend category of the market.What Are Smart Beta ETFs?The ETF industry has long been dominated by products based on market cap weighted indexes, a strategy created to reflect the market or a particular market segment.Market cap weighted indexes work great for investors who believe in market efficiency. They provide a low-cost, convenient and transparent way of replicating market returns.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.This kind of index follows this same mindset, as it attempts to pick stocks that have better chances of risk-return performance; non-cap weighted strategies base selection on certain fundamental characteristics, or a mix of such characteristics.Methodologies like equal-weighting, one of the simplest options out there, fundamental weighting, and volatility/momentum based weighting are all choices offered to investors in this space, but not all of them can deliver superior returns.Fund Sponsor & IndexThe fund is managed by Goldman Sachs Funds. GSEW has been able to amass assets over $967.75 million, making it one of the larger ETFs in the Style Box - Large Cap Blend. Before fees and expenses, this particular fund seeks to match the performance of the Solactive US Large Cap Equal Weight Index.The Solactive US Large Cap Equal Weight Index is an equal-weight version of the Solactive US Large Cap Index including equity securities of approximately 500 of the largest U.S. companies.Cost & Other ExpensesCost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive cousins if all other fundamentals are the same.Operating expenses on an annual basis are 0.09% for GSEW, making it one of the least expensive products in the space.GSEW's 12-month trailing dividend yield is 1.41%.Sector Exposure and Top HoldingsEven though ETFs offer diversified exposure which minimizes single stock risk, it is still important to look into a fund's holdings before investing. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.Representing 16.80% of the portfolio, the fund has heaviest allocation to the Information Technology sector; Industrials and Financials round out the top three.Taking into account individual holdings, Atlassian Corp (TEAM) accounts for about 0.28% of the fund's total assets, followed by United Airlines Holdings Inc (UAL) and Microstrategy Inc (MSTR).The top 10 holdings account for about 2.54% of total assets under management.Performance and RiskThe ETF has gained about 24.50% and is up roughly 34.06% so far this year and in the past one year (as of 11/27/2024), respectively. GSEW has traded between $62.47 and $82.83 during this last 52-week period.The fund has a beta of 1.05 and standard deviation of 18.01% for the trailing three-year period. With about 495 holdings, it effectively diversifies company-specific risk.AlternativesGoldman Sachs Equal Weight U.S. Large Cap Equity ETF is a reasonable option for investors seeking to outperform the Style Box - Large Cap Blend segment of the market. However, there are other ETFs in the space which investors could consider.IShares Core S&P 500 ETF (IVV) tracks S&P 500 Index and the SPDR S&P 500 ETF (SPY) tracks S&P 500 Index. IShares Core S&P 500 ETF has $572.10 billion in assets, SPDR S&P 500 ETF has $627.67 billion. IVV has an expense ratio of 0.03% and SPY charges 0.09%.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 - Large Cap Blend.Bottom 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.Want key ETF info delivered straight to your inbox?Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.Get it free >>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 Equal Weight U.S. Large Cap Equity ETF (GSEW): ETF Research Reports United Airlines Holdings Inc (UAL): Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports MicroStrategy Incorporated (MSTR): Free Stock Analysis Report Atlassian Corporation PLC (TEAM): Free Stock Analysis Report iShares Core S&P 500 ETF (IVV): ETF Research ReportsTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks