The Sword of the Gods is one handed, but the stats vary. I tried a sword with Frost briefly, but it made fights too easy, so I then avoided that bonus (only noticed it one or two other times).
If you quick save before running your mouse over an item/chest/merchant or hitting the alt key, you can identify the item or trade with the merchant, then quick load to get different stats or inventory. This can be done repeatedly to get the best stats or specific bonuses on an item (save after finding good candidates) or looking for specific items (such as spell books or charms) from merchants. Don't waste too much time with this, though, it really isn't necessary to get the best possible equipment.
When you collect all 3 holy items and complete the quest, you will have a choice of which item to keep in a usable form. Though the name then changes to Nobleman's Sword (or dagger / amulet) it is still often referred to as the holy sword.
With the Sword of the Gods available relatively soon after entering the wastelands, you may want to consider picking the holy amulet, unless you already have fairly good amulet. I used the reload method at the holy item quest to check out a few amulets and swords. I went with the sword because switching to a one handed weapon allowed me to use the dragon shield (with its extra bonuses), though I was tempted to go for one of the amulet versions.
