Goldman Sachs Asset Management expanded upon its line of ActiveBeta suite of smart beta exchange traded funds with the addition of a small-capitalization U.S. equity option to help investors better gain exposure to the various market segments.
On Thursday, Goldman Sachs launched the Goldman Sachs ActiveBeta U.S. Small Cap Equity ETF (NYSEArca: GSSC). GSSC has a 0.20% expense ratio.
“Over the last two years, we have focused on building a suite of innovative, low-cost ETFs that allow investors to access key markets while harnessing the time-tested benefits of a factor-diversified approach,” Michael Crinieri, GSAM’s Global Head of ETF Strategy, said in a note. “After applying our ActiveBeta approach to large cap equities in the U.S. as well as in Emerging Markets, Developed International Equities, Europe and Japan, we are thrilled to now apply it to a market as dynamic and diverse as U.S. small cap equities.”
The ActiveBeta U.S. Small Cap Equity ETF tries to reflect the performance of the Goldman Sachs ActiveBeta Small Cap Equity Index, which screens for small capitalization U.S. issuers based on factors like value, momentum, quality and low volatility.
The value factor refers to stocks from companies that may be undervalued by the rest of the market. This can help investors gain exposure to high potential stocks others may have overlooked.