Should Goldman Sachs MarketBeta Russell 1000 Growth Equity ETF (GGUS) Be on Your Investing Radar?

The Goldman Sachs MarketBeta Russell 1000 Growth Equity ETF (GGUS) was launched on November 28, 2023, and is a passively managed exchange traded fund designed to offer broad exposure to the Large Cap Growth segment of the US equity market.

The fund is sponsored by Goldman Sachs Funds. It has amassed assets over $396.37 million, making it one of the average sized ETFs attempting to match the Large Cap Growth segment of the US equity market.

Why Large Cap Growth

Large cap companies typically have a market capitalization above $10 billion. They tend to be stable companies with predictable cash flows and are usually less volatile than mid and small cap companies.

Growth stocks have higher than average sales and earnings growth rates. While these are expected to grow faster than the broader market, they also have higher valuations. Also, growth stocks are a type of equity that carries more risk compared to others. When you consider growth versus value, growth stocks are usually the clear winner in strong bull markets but tend to fall flat in nearly all other environments.

Costs

When considering an ETF's total return, expense ratios are an important factor, and cheaper funds can significantly outperform their more expensive counterparts in the long term if all other factors remain equal.

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 0.45%.

Sector Exposure and Top Holdings

While ETFs offer diversified exposure, which minimizes single stock risk, a deep look into a fund's holdings is a valuable exercise. 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 44.6% of the portfolio. Consumer Discretionary and Telecom round out the top three.

Looking at individual holdings, Nvidia Corporation (NVDA) accounts for about 11.61% of total assets, followed by Apple Inc. (AAPL) and Amazon.com Inc (AMZN).

The top 10 holdings account for about 50.97% of total assets under management.

Performance and Risk

GGUS seeks to match the performance of the RUSSELL 1000 GROWTH 40 ACT DLY CAPPED ID before fees and expenses. The Russell 1000 Growth 40 Act Daily Capped Index measures the performance of the large and mid-capitalization growth segment of U.S. equity issuers, with a capping methodology.

The ETF has lost about 4.24% so far this year and is up about 16.33% in the last one year (as of 03/04/2026). In the past 52-week period, it has traded between $43.98 and $65.88.

The ETF has a beta of 1.20 and standard deviation of 18.78% for the trailing three-year period. With about 392 holdings, it effectively diversifies company-specific risk.

Alternatives

Goldman Sachs MarketBeta Russell 1000 Growth Equity ETF holds a Zacks ETF Rank of 1 (Strong Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, GGUS is an outstanding option for investors seeking exposure to the Style Box - Large Cap Growth segment of the market. There are other additional ETFs in the space that investors could consider as well.

The Vanguard Growth Index Fund ETF Shares (VUG) and the Invesco QQQ (QQQ) track a similar index. While Vanguard Growth Index Fund ETF Shares has $194.12 billion in assets, Invesco QQQ has $391.46 billion. VUG has an expense ratio of 0.03% and QQQ charges 0.18%.

Bottom-Line

Passively managed ETFs are becoming increasingly popular with institutional as well as retail investors due to their low cost, transparency, flexibility and tax efficiency. They are 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 Growth Equity ETF (GGUS): ETF Research Reports

This article originally published on Zacks Investment Research (zacks.com).

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