Designed to provide broad exposure to the Large Cap Value segment of the US equity market, the Goldman Sachs MarketBeta Russell 1000 Value Equity ETF (GVUS) is a passively managed exchange traded fund launched on November 28, 2023.
The fund is sponsored by Goldman Sachs Funds. It has amassed assets over $395.67 million, making it one of the average sized ETFs attempting to match the Large Cap Value segment of the US equity market.
Why Large Cap Value
Large cap companies usually have a market capitalization above $10 billion. Considered a more stable option, large cap companies boast more predictable cash flows and are less volatile than their mid and small cap counterparts.
Value stocks have lower than average price-to-earnings and price-to-book ratios. They also have lower than average sales and earnings growth rates. Looking at their long-term performance, value stocks have outperformed growth stocks in almost all markets. They are however likely to underperform growth stocks in strong bull markets.
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 0.12%, making it one of the least expensive products in the space.
It has a 12-month trailing dividend yield of 1.65%.
Sector Exposure and Top Holdings
ETFs offer a 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.
This ETF has heaviest allocation to the Financials sector -- about 19.6% of the portfolio. Information Technology and Industrials round out the top three.
Looking at individual holdings, Berkshire Hathaway Inc. (BRK/B) accounts for about 2.87% of total assets, followed by Jpmorgan Chase & Co (JPM) and Exxon Mobil Corporation (XOM).
The top 10 holdings account for about 19.27% of total assets under management.
Performance and Risk
GVUS seeks to match the performance of the RUSSELL 1000 VALUE 40 ACT DAILY CAP ID before fees and expenses. The Russell 1000 Value 40 Act Daily Capped Index measures the performance of the large and mid-capitalization value segment of U.S. equity issuers, with a capping methodology.
The ETF has gained about 9.46% so far this year and is up roughly 26.03% in the last one year (as of 05/05/2026). In the past 52-week period, it has traded between $47.06 and $59.40.
The ETF has a beta of 0.79 and standard deviation of 13.11% for the trailing three-year period. With about 859 holdings, it effectively diversifies company-specific risk.
Alternatives
Goldman Sachs MarketBeta Russell 1000 Value 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, GVUS is a good option for those seeking exposure to the Style Box - Large Cap Value area of the market. Investors might also want to consider some other ETF options in the space.
The Schwab U.S. Dividend Equity ETF (SCHD) and the Vanguard Value Index Fund ETF Shares (VTV) track a similar index. While Schwab U.S. Dividend Equity ETF has $89.57 billion in assets, Vanguard Value Index Fund ETF Shares has $170.63 billion. SCHD has an expense ratio of 0.06% and VTV 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 Russell 1000 Value Equity ETF (GVUS): ETF Research Reports
This article originally published on Zacks Investment Research (zacks.com).