Launched on 03/15/2022, the Goldman Sachs ActiveBeta World Low Vol Plus Equity ETF (GLOV) is a smart beta exchange traded fund offering broad exposure to the Global Large-Cap Blend Equity ETF category of the market.

What Are Smart Beta ETFs?

Products that are based on market cap weighted indexes, which are strategies designed to reflect a specific market segment or the market as a whole, have traditionally dominated the ETF industry.

Market cap weighted indexes offer a low-cost, convenient, and transparent way of replicating market returns, and are a good option for investors who believe in market efficiency.

However, some investors believe in the possibility of beating the market through exceptional stock selection, and choose a different type of fund that tracks non-cap weighted strategies: smart beta.

Based on specific fundamental characteristics, or a combination of such, these indexes attempt to pick stocks that have a better chance of risk-return performance.

This area offers many different investment choices, such as simplest equal-weighting, fundamental weighting and volatility/momentum based weighting methodologies; however, not all of these strategies can deliver superior results.

Fund Sponsor & Index

The fund is managed by Goldman Sachs Funds, and has been able to amass over $1.19 billion, which makes it one of the larger ETFs in the Global Large-Cap Blend Equity ETF. This particular fund, before fees and expenses, seeks to match the performance of the GOLDMAN SACHS ACTBT WORLD LW VL PL EQ ID.

The Goldman Sachs ActiveBeta World Low Vol Plus Equity Index delivers exposure to large and mid-capitalization equity securities of developed market issuers, including the United States.

Cost & Other Expenses

Since cheaper funds tend to produce better results than more expensive funds, assuming all other factors remain equal, it is important for investors to pay attention to an ETF's expense ratio.

Operating expenses on an annual basis are 0.25% for GLOV, making it one of the cheaper products in the space.

GLOV's 12-month trailing dividend yield is 1.71%.

Sector Exposure and Top Holdings

Most ETFs are very transparent products, and disclose their holdings on a daily basis. ETFs also offer diversified exposure, which minimizes single stock risk, though it's still important for investors to research a fund's holdings.

When you look at individual holdings, Apple Inc (AAPL) accounts for about 3.27% of the fund's total assets, followed by Microsoft Corp (MSFT) and Nvidia Corp (NVDA).

Its top 10 holdings account for approximately 15.57% of GLOV's total assets under management.

Performance and Risk

The ETF return is roughly 4.21% so far this year and is up about 15.81% in the last one year (as of 04/28/2025). In the past 52-week period, it has traded between $44.79 and $52.36.

GLOV has a beta of 0.75 and standard deviation of 13.66% for the trailing three-year period. With about 463 holdings, it effectively diversifies company-specific risk.

Alternatives

Goldman Sachs ActiveBeta World Low Vol Plus Equity ETF is a reasonable option for investors seeking to outperform the Global Large-Cap Blend Equity ETF segment of the market. However, there are other ETFs in the space which investors could consider.

JPMorgan Global Select Equity ETF (JGLO) tracks ---------------------------------------- and the iShares MSCI ACWI ETF (ACWI) tracks MSCI All Country World Index. JPMorgan Global Select Equity ETF has $6.19 billion in assets, iShares MSCI ACWI ETF has $19.81 billion. JGLO has an expense ratio of 0.47% and ACWI charges 0.32%.

Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Global Large-Cap Blend Equity ETF.

Bottom Line

To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.

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Goldman Sachs ActiveBeta World Low Vol Plus Equity ETF (GLOV): ETF Research Reports

Apple Inc. (AAPL) : Free Stock Analysis Report

Microsoft Corporation (MSFT) : Free Stock Analysis Report

NVIDIA Corporation (NVDA) : Free Stock Analysis Report

iShares MSCI ACWI ETF (ACWI): ETF Research Reports

This article originally published on Zacks Investment Research (zacks.com).

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