Small-cap stocks are experiencing a notable resurgence, and Goldman Sachs Asset Management is strategically positioning itself to leverage this trend within the exchange-traded fund (ETF) landscape. Over the past five weeks, the firm has successfully introduced three new active products, with a particular focus on catering to investor demand for small-cap exposure.
One of the standout offerings in this lineup is the Goldman Sachs Small Cap Core Equity ETF, marking the firm’s inaugural foray into the realm of active small-cap ETFs. The timing of this launch aligns with the increasing interest from investors in this market segment. Since its introduction in early October, the Small Cap Core ETF has demonstrated robust performance, recording an impressive nearly 8% gain.
In a recent interview on CNBC’s “ETF Edge,” Brendan McCarthy, the Managing Director of Exchange Traded Funds at Goldman Sachs Asset Management, highlighted the firm’s responsiveness to market demand and its commitment to meeting investors’ evolving needs. The new ETF’s success is evidenced by its positive trajectory within a relatively short timeframe.
Examining the fund’s composition, top holdings include Federal Signal Corp, Meritage Homes, and Onto Innovation, according to information available on the fund’s website. These holdings reflect a strategic selection of small-cap assets, contributing to the fund’s overall performance.
It’s noteworthy that while small-cap stocks, as tracked by the Russell 2000, have demonstrated a commendable uptrend—up over 7% since early October—there remains a performance gap compared to the broader S&P 500 index. The Russell 2000 is trailing the S&P 500 by approximately 13% year-to-date. Despite this relative underperformance, the heightened interest in small-cap equities, as indicated by Goldman Sachs Asset Management’s recent ETF launches, underscores a shifting investor sentiment and the growing recognition of the unique opportunities presented by small-cap stocks in the current market landscape.
