The Goldman Sachs ActiveBeta World Equity ETF (GSWO) made its debut on 03/15/2022, and is a smart beta exchange traded fund that provides broad exposure to the Global Large-Cap Blend Equity ETF category of the market.
What Are Smart Beta ETFs?
Products that are based on market cap weighted indexes, which are strategies designed to reflect a specific market segment or the market as a whole, have traditionally dominated the ETF industry.
Market cap weighted indexes work great for investors who believe in market efficiency. They provide a low-cost, convenient and transparent way of replicating market returns.
There are some investors, though, who think it's possible to beat the market with great stock selection; this group likely invests in another class of funds known as smart beta, which track non-cap weighted strategies.
By attempting to pick stocks that have a better chance of risk-return performance, non-cap weighted indexes are based on certain fundamental characteristics, or a combination of such.
Methodologies like equal-weighting, one of the simplest options out there, fundamental weighting, and volatility/momentum based weighting are all choices offered to investors in this space, but not all of them can deliver superior returns.
Fund Sponsor & Index
Managed by Goldman Sachs Funds, GSWO has amassed assets over $1.79 billion, making it one of the larger ETFs in the Global Large-Cap Blend Equity ETF. This particular fund, before fees and expenses, seeks to match the performance of the GOLDMAN SACHS ACTIVEBETA WORLD EQ INDEX .
The Goldman Sachs ActiveBeta World Equity Index seeks to deliver exposure to large and mid-capitalization equity securities of developed market issuers, including the United States.
Cost & Other Expenses
Cost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive cousins if all other fundamentals are the same.
Annual operating expenses for this ETF are 0.15%, making it one of the least expensive products in the space.
The fund has a 12-month trailing dividend yield of 1.48%.
Sector Exposure and Top Holdings
ETFs offer 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.
Looking at individual holdings, Nvidia Corporation (NVDA) accounts for about 5.29% of total assets, followed by Apple Inc. (AAPL) and Microsoft Corporation (MSFT).
Its top 10 holdings account for approximately 26.93% of GSWO's total assets under management.
Performance and Risk
Year-to-date, the Goldman Sachs ActiveBeta World Equity ETF has added about 10.61% so far, and it's up approximately 0% over the last 12 months (as of 08/26/2026). GSWO has traded between $54.73 $66.26 in this past 52-week period.
The fund has a beta of 0.74 and standard deviation of 0.00% for the trailing three-year period. With about 781 holdings, it effectively diversifies company-specific risk .
Alternatives
Goldman Sachs ActiveBeta World Equity ETF is a reasonable option for investors seeking to outperform the Global Large-Cap Blend Equity ETF segment of the market. However, there are other ETFs in the space which investors could consider.
iShares Global 100 ETF (IOO) tracks S&P Global 100 Index and the iShares MSCI ACWI ETF (ACWI) tracks MSCI All Country World Index. iShares Global 100 ETF has $9.18 billion in assets, iShares MSCI ACWI ETF has $33.28 billion. IOO has an expense ratio of 0.40% and ACWI changes 0.32%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Global Large-Cap Blend Equity ETF
Bottom Line
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 ActiveBeta World Equity ETF (GSWO): ETF Research ReportsThis article originally published on Zacks Investment Research (zacks.com).
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