GSSC vs VYM

GSSCBGoldman Sachs ActiveBeta U.S. Small Cap Equity ETF

VYMAVanguard High Dividend Yield 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.

VYM The no-frills dividend workhorse. VYM buys the higher-yielding end of the US market, roughly 600 names, for four basis points: no quality screen, no dividend-growth-streak test, just yield, at scale since 2006.

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.

VYM The Fund seeks to track a benchmark index measuring the investment return of common stocks from companies characterized by high dividend yields.

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

• VYM Four basis points a year, against a peer-group median near 0.32%. Cheaper than cohort neighbors VONV (0.06%) and FNDX (0.25%).
• Running since 2006 and now a multi-billion-dollar fund that trades actively, so ordinary orders tend to fill at tight spreads.
• Simple mandate: track the FTSE High Dividend Yield Index of US common stocks screened on yield. No manager discretion, no options overlay, plain 1940-Act fund.vanguard.com
• Pays quarterly, and among 100-plus value and multifactor rivals it stands as one of the strongest overall packages in the group.

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).

• VYM The screen is yield, not payout growth or dividend quality, so a company can qualify simply because its share price fell.
• This is a value slice by design, tilted to established payers, so it behaves differently from a total US market fund.
• Roughly 600 holdings, but weight leans toward the largest payers, so the top of the roster does more of the work than the count suggests.

Full GSSC profile⁠

Full VYM profile⁠