With an annual fee of just 0.09%, or $9 per $10,000 invested, GSLC is one of the least expensive smart beta ETFs on the market today. In fact, GSLC’s fee is on par with or below many run-of-the-mill, cap-weighted U.S. equity index funds.
There are approximately 200 multi-factor ETFs on the market today with combined assets under management of almost $40 billion.
GSLC “constructs its value and momentum sleeves differently than many of its peers. Within the value sleeve, the managers limit the fund’s industry tilts relative to the selection universe, arguing that such bets are not rewarded. They measure momentum based on returns adjusted for market sensitivity and stock volatility. This gives the fund a cleaner read on strong performance that is specific to a stock that may be more likely to persist,” adds Morningstar.
Goldman Sachs ActiveBeta U.S. Large Cap Equity ETF (NYSEarca: GSLC)