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Highlights

  • Goldman Sachs Small Cap Core ETF (GSC) aims for long-term capital growth
  • GSC has delivered 17.34% returns in the past six months, outperforming its benchmark index
  • Top holdings include Federal Signal Corp and Meritage Homes, with significant sector allocations in industrial and financial sectors
  • A significant support level for the fund is located at USD 49.00, while a critical resistance level is placed at USD 52.12

The Goldman Sachs Small Cap Core ETF (GSC) aims for long-term capital growth by leveraging a team of small-cap experts who engage in thorough, bottom-up security selection with an emphasis on quality and disciplined valuation. The fund’s portfolio managers, who have more than 20 years of experience in managing a US Small Cap franchise, choose high-conviction stocks to build the portfolio.

Small Caps, Big Returns

Small caps offer exposure to a diverse range of emerging companies, enhancing a large-cap portfolio with the high growth potential of future mid and large-cap leaders. By identifying promising US companies early in their development, investors can potentially achieve good long-term returns. The benefits of a carefully managed active ETF in this space include the potential for substantial outperformance, along with the advantages of trading ease, transparency, tax efficiency, and lower costs, all while navigating around many of the more volatile and loss-making stocks.

The Goldman Sachs Small Cap Core ETF has achieved cumulative returns of 17.34% over the past six months and 15.34% year-to-date. In comparison, its benchmark index has delivered returns of 16.60% and 12.07% for the same periods.

Data source: Goldman Sachs website; Image Source: © 2024 Krish Capital Pty.Ltd

Fund Allocations

The top 10 holdings of this fund account for approximately 17.76% of the total portfolio. Federal Signal Corp holds the largest allocation at about 2.25%, closely followed by Meritage Homes Corp at 2.21%. Sector-wise, the fund has its highest weight in the industrial sector at around 18.48%, with financials coming in second at approximately 17.24%.

Technical Analysis

While experiencing an uptrend, GSC's prices developed a three-peak pattern, anticipating a potential correction. Moreover, the momentum oscillator RSI (14-period) formed a top divergence in relation to prices, adding more evidence to the mentioned observation. Prices are trading between its previous peak and trough, which serve as resistance and support levels for the ETF, respectively. A significant support level for the fund is located at USD 49.00, while a critical resistance level is placed at USD 52.12.

Data and image source: TradingView

The Goldman Sachs Small Cap Core ETF stands out for its strategic focus on emerging companies and disciplined stock selection. With returns of 17.34% over six months, outperforming its benchmark, the fund might be a suitable option for long-term growth potential. However, past performance is not a reliable indicator of future performance.