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

Making its debut on 09/12/2017, smart beta exchange traded fund Goldman Sachs Equal Weight U.S. Large Cap Equity ETF (GSEW) provides investors broad exposure to the Style Box - Large Cap Blend category of the market.What Are Smart Beta ETFs?Market cap weighted indexes were created to reflect the market, or a specific segment of the market, and the ETF industry has traditionally been dominated by products based on this strategy.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.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.Even though this space provides many choices to investors--think one of the simplest methodologies like equal-weighting and more complicated ones like fundamental and volatility/momentum based weighting--not all have been able to deliver first-rate results.Fund Sponsor & IndexBecause the fund has amassed over $1.11 billion, this makes it one of the larger ETFs in the Style Box - Large Cap Blend. GSEW is managed by Goldman Sachs Funds. GSEW, before fees and expenses, 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 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.With one of the least expensive products in the space, this ETF has annual operating expenses of 0.09%.It's 12-month trailing dividend yield comes in at 1.39%.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.For GSEW, it has heaviest allocation in the Industrials sector --about 16.80% of the portfolio --while Information Technology and Financials round out the top three.When you look at individual holdings, Apollo Global Management Inc (APO) accounts for about 0.21% of the fund's total assets, followed by Applovin Corp (APP) and Ge Vernova Inc (GEV).Its top 10 holdings account for approximately 2.1% of GSEW's total assets under management.Performance and RiskSo far this year, GSEW has gained about 4.71%, and is up about 23.16% in the last one year (as of 01/27/2025). During this past 52-week period, the fund has traded between $66.84 and $82.83.GSEW has a beta of 1.06 and standard deviation of 17.72% 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 $608.65 billion in assets, SPDR S&P 500 ETF has $639.57 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 Apollo Global Management Inc. (APO): Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports AppLovin Corporation (APP): Free Stock Analysis Report iShares Core S&P 500 ETF (IVV): ETF Research Reports GE Vernova Inc. (GEV): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks