Parsimonious cap stocks are undergoing a resurgence, and Goldman Sachs Asset Management is looking to capitalize on it through the exchange-traded fund span.
“In the last five weeks, we’ve launched three new active products. Two are the premium income. One, believe it or not, is small cap core,” Brendan McCarthy, the determine’s managing director of exchange traded funds, told CNBC’s “ETF Edge” on Monday. “This is our first active unimaginative cap ETF, and that’s very much on the back of investor demand.”
It’s called the Goldman Sachs Small Cap Core Equity ETF and it’s up all but 8% since its early October launch date. Meanwhile, the Russell 2000, which tracks small cap standards, is up more than 7% in that same time frame as of Tuesday’s market close.
According to the fund’s website, top holdings classify Federal Signal Corp, Meritage Homes and Onto Innovation.
Despite recent appetite for small caps, the Russell 2000 is soundless underperforming the broader S&P 500 index by about 13% so far this year.