Goldman Sachs Small Cap Core Equity ETF

Goldman Sachs Small Cap Core Equity ETF (GSC) is an actively managed fund. Its managers pick small US companies they see as high-quality businesses that can keep growing, and they measure results against the Russell 2000 Index. Most small-cap ETFs track an index, but this one held a hand-picked list of 98 stocks as of August 31, 2026. The fund charges 0.75% a year. The similar index funds it was compared with average 0.08%.

• Over the year to Oct 27, 2026, GSC returned +16.7%, 4th of 7 among similar funds.
• Its worst full calendar year was 2025 (+6.2%); its best was 2024 (+13.8%).
• The deepest fall in its price history was 41.1% (Nov 25, 2024 to Apr 17, 2025), recovered by Dec 10, 2025.

As of Aug 31, 2026, the fund held 98 securities; the ten largest made up 16.04% of assets.

• Over the three months to Aug 31, 2026, investors added a net $13.6M (creations minus redemptions, per the N-PORT report).
• Monthly total returns reported for that quarter: +11.77%, -4.86%, -1.53%.

This is an actively managed ETF, not an index fund. Goldman Sachs Asset Management (GSAM) picks the holdings and measures results against the Russell 2000 Index, a widely followed small-company benchmark. At least 80% of net assets normally go into small-company stocks. As of December 1, 2025, the prospectus defined small companies as those with stock market values between $10 million and $31 billion.

GSAM relies on fundamental research into individual businesses. It looks for signs of a high-quality business with sustainable growth, such as strong franchises, favorable long-term prospects and excellent management. Valuation also matters. ESG (environmental, social and governance) factors may play a part. The team may sell when a company's outlook weakens, the price looks too high, or the company outgrows the small-cap range. There is no index rebalancing schedule. The prospectus reports 57% portfolio turnover, a gauge of yearly trading.

As of August 31, 2026, the fund had 98 holdings, and the 10 largest made up about 16% of assets. Manhattan Associates, Glaukos and Terex led at about 1.7% to 1.8% each. About 89% sat in US companies. The fund may invest up to 25% abroad, including emerging markets, and up to 20% in bonds. It is "non-diversified," meaning it may put more money into fewer companies than a diversified fund.

• GSC charges 0.75% a year, versus an average of 0.08% for the similar funds below (7th of 7, cheapest first).
• Of that, 0.8% is the management fee; the rest covers other fund expenses.
• The fee includes a 0.05% waiver from the adviser, which may end.
• Using the prospectus's standard example, $10,000 invested would cost about $77 in the first year and $985 over 10 years (assuming a 5% annual return).

It is a small, high-cost, actively managed small-cap fund with a short and bumpy record, so it fits better as an add-on next to a broad core fund than as the main holding.

GSC could add small-company stocks and a manager's own picks next to a broad core fund. Its record is short. It launched on October 3, 2023, so it did not exist during the 2008 financial crisis, the 2020 COVID crash or the 2022 bear market. Its deepest drop was 41.1%, from November 25, 2024 to April 17, 2025. It took about 7.8 months to recover, regaining its peak on December 10, 2025. Someone who had to sell shares or take cash out in spring 2025 would have locked in a large loss. Its weakest full calendar year, 2025, still ended with a 6.2% gain.

Income is small. The yield was 0.21% as of October 27, 2026, paid quarterly. Costs are high for this category. In the SEC's standard example, $10,000 invested would pay about $985 in costs over 10 years. Past results don't predict future ones, and a plan should look at the whole portfolio, not one fund.

Matched by closest holdings overlap from the latest N-PORT reports (no similar fund shares 20% or more of its holdings).