GSSC vs VONV

GSSCBGoldman Sachs ActiveBeta U.S. Small Cap Equity ETF

VONVAVanguard Russell 1000 Value ETF

In short

GSSC Four factor tilts (value, momentum, quality, low volatility) stacked in equal weights across roughly 1,400 small caps for 0.20% a year. Goldman's alternative to picking one factor and hoping.

VONV The plain-vanilla value trade, done cheap: about 900 large US value stocks, full replication of the Russell 1000 Value Index, 0.06% a year. No factor cocktail, no premium price tag, and one of the strongest implementations in its factor peer group.

Stated mandate

GSSC The Fund seeks to track, before fees and expenses, the Goldman Sachs ActiveBeta U.S. Small Cap Equity Index, which provides exposure to equity securities of small-capitalization U.S. issuers.

VONV The fund seeks to track the Russell 1000 Value Index, representing large-capitalization value stocks in the United States. It uses passive indexing and full replication to remain closely aligned with that benchmark.

Why people hold it

• GSSC Costs 0.20% a year, under the typical price tag in the US multifactor crowd.
• Roughly 1,400 names, so no single small cap dominates the portfolio.
• The four factor sleeves combine in equal weights with offsetting positions netted out, so the sleeves don't trade against each other.gsam.com
• The index reconstitutes and rebalances quarterly, so the tilts refresh on a set schedule instead of drifting.gsam.com

• VONV 0.06% a year, a fraction of the typical fee among factor ETFs. On a rules-based value index there is little room for cleverness, so cost does most of the work.vanguard.com
• Full replication, not sampling: it owns the index's roughly 900 names and has stayed tightly aligned with the Russell 1000 Value benchmark since launching in 2010.
• Same Russell benchmark as pricier rivals for less: the Goldman MarketBeta version (GVUS) charges 0.12% to track the identical value index.
• A multi-billion-dollar fund that trades actively, among the easiest in its group to get in and out of, and it distributes quarterly.

Worth knowing

• GSSC Thinly traded next to the giant small-cap index funds, so spreads can run wider and limit orders earn their keep.
• Netting four factors against one another softens each one; this sits closer to the broad small-cap market than a sharp single-factor bet.gsam.com
• Small caps are the jumpier end of a peer group stacked with large-cap names (FNDX, VONV, IUSG).

• VONV One screen, one style. Value only, with no quality or momentum overlay, so the ride follows the value side of the market wherever it goes.vanguard.com
• This is the entire value bucket, not a best-ideas portfolio. About 900 holdings means results hug the large-cap value category rather than stray from it.
• Cheaper exists nearby: Vanguard's VYM charges 0.04%, but it screens for dividend yield, a different portfolio than a Russell value index.

Full GSSC profile⁠

Full VONV profile⁠