Monday, October 5, 2015

So Goldman Sachs Got Into the ETF Business

Who knew?
From Daily Speculations:

Goldman Sachs Enters ETF Business, from anonymous

GS just launched a smart-beta product which I believe is their first proprietary ETF.  
They are charging only 9 basis points for the GSLC etf!!!  
It's a large cap etf, rebalanced quarterly based on their scoring of value, momentum, quality, and volatility. A quick look has them underweight the largest 40 S&P names except for Gild, HD, CVS and WMT. Interestingly, they don't hold any GS — probably due to regulatory issues. 
If anyone knows of a backtest of their index, I'd be interested in examining it. Without historical data, it's difficult to understand the attraction versus competitors (except their fees are extremely low and so they've undercut Wisdomtree and other smart beta products). Perhaps their inhouse brokers will sell this as an alternative to the S&P?...MORE
Here's Goldman's page for their "Goldman Sachs ActiveBeta U.S. Large Cap Equity ETF" launched September 17.