Looking for broad exposure to the Large Cap Blend segment of the US equity market? You should consider the Goldman Sachs MarketBeta U.S. 1000 Equity ETF (GUSA), a passively managed exchange traded fund launched on April 5, 2022.
The fund is sponsored by Goldman Sachs Funds. It has amassed assets over $2.45 billion, making it one of the larger ETFs attempting to match the Large Cap Blend segment of the US equity market.
Why Large Cap Blend
Large cap companies typically have a market capitalization above $10 billion. Overall, they are usually a stable option, with less risk and more sure-fire cash flows than mid and small cap companies.
Typically holding a combination of both growth and value stocks, blend ETFs also demonstrate qualities seen in value and growth investments.
Costs
Investors should also pay attention to an ETF's expense ratio. Lower cost products will produce better results than those with a higher cost, assuming all other metrics remain the same.
Annual operating expenses for this ETF are 0.1%, making it one of the least expensive products in the space.
It has a 12-month trailing dividend yield of 0.96%.
Sector Exposure and Top Holdings
It is important to delve into an ETF's holdings before investing despite the many upsides to these kinds of funds like diversified exposure, which minimizes single stock risk. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation to the Information Technology sector -- about 37.6% of the portfolio. Financials and Healthcare round out the top three.
Looking at individual holdings, Nvidia Corporation (NVDA) accounts for about 7.54% of total assets, followed by Apple Inc. (AAPL) and Microsoft Corporation (MSFT).
The top 10 holdings account for about 36.17% of total assets under management.
Performance and Risk
GUSA seeks to match the performance of the SOLACTIVE GBS US 1000 INDEX before fees and expenses. The Solactive GBS US 1000 Index measures the performance of equity securities of large and mid-capitalization equity issuers covering approximately the largest 1,000 of the free-float market capitalization in the United States.
The ETF return is roughly 14.43% so far this year and it's up approximately 17.67% in the last one year (as of 10/14/2026). In the past 52-week period, it has traded between $54.70 and $67.38.
The ETF has a beta of 1.01 and standard deviation of 14.67% for the trailing three-year period. With about 1007 holdings, it effectively diversifies company-specific risk.
Alternatives
Goldman Sachs MarketBeta U.S. 1000 Equity ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, GUSA is a sufficient option for those seeking exposure to the Style Box - Large Cap Blend area of the market. Investors might also want to consider some other ETF options in the space.
The iShares Core S&P 500 ETF (IVV) and the Vanguard 500 Index Fund ETF Shares (VOO) track a similar index. While iShares Core S&P 500 ETF has $896.38 billion in assets, Vanguard 500 Index Fund ETF Shares has $1,053.93 billion. IVV has an expense ratio of 0.03% and VOO charges 0.03%.
Bottom-Line
An increasingly popular option among retail and institutional investors, passively managed ETFs offer low costs, transparency, flexibility, and tax efficiency; they are also excellent vehicles for long term investors.
To 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.
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Goldman Sachs MarketBeta U.S. 1000 Equity ETF (GUSA): ETF Research Reports
This article originally published on Zacks Investment Research (zacks.com).