The Goldman Sachs Small Cap Core Equity ETF (NYSE Arca: GSC) began trading on the New York Stock Exchange. The actively managed ETF seeks long-term capital growth by investing in small-cap equities. Goldman Sachs’ fundamental equity U.S. small-cap investment team selects holdings through an active, bottom-up approach. The team focuses on quality and strong valuation discipline.
The fund’s fundamental equity investment process involves evaluating potential investments based on characteristics believed to suggest a high-quality business with sustainable growth. This includes strong business franchises, favorable long-term prospects, and excellent management. The ETF will also consider valuation of companies when determining whether to buy and/or sell securities.
“Capturing successful U.S. companies early in their lifecycle can provide a source of strong, long-term returns in a broader portfolio,” according to Goldman Sachs.
A Strong ETF Presence in Its Short History
Goldman Sachs has been steadily adding to its stable of ETFs. The launch of GSC follows the listing of the Goldman Sachs MarketBeta Total International Equity ETF (GXUS). GXUS provides diversified access to approximately 85% of the global markets, excluding the U.S. In March, GSAM launched the Goldman Sachs Community Municipal Bond ETF (GMUN), which provides exposure to tax-exempt municipal securities.
“Goldman has established a strong ETF presence in its short history,” said Todd Rosenbluth, head of research at VettaFi. “It is exciting to see them expand their equity suite to include this small-cap offering.”
GSC has an expense ratio of 0.75%.
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