Goldman Sachs Asset Management (GSAM) has launched an ETF seeking to track the Goldman Sachs Hedge Fund VIP Index, a proprietary index maintained by GSAM.
The index includes 50 “Very-Important-Positions” – US-listed stocks that most often appear in the top 10 holdings of over 650 hedge fund managers, managing over USD700 billion in equity.
GVIP is competitively priced to shareholders at 45 basis points (bps) and began trading on the NYSE Arca on 3 November with USD20 million in assets.
“We’re thrilled to be able to package these high conviction investment ideas from a broad array of professional investors into a cost effective, tax-efficient and convenient ETF wrapper,” says Michael Crinieri, head of ETF strategies at GSAM.
The index is constructed in accordance with a rules-based methodology derived from concepts previously developed by Goldman Sachs’ Global Investment Research division. The index, calculated by Solactive, is equally weighted and includes stocks owned by hedge fund managers holding between 10 and 200 distinct equity positions as reported in their most recent Form 13F filings.
GSAM started offering ETFs in September 2015 with the launch of Goldman Sachs ActiveBeta US Large Cap Equity ETF (GSLC). GSAM now offers seven ETFs with USD2.5 billion in assets as of 30 September 2016.
GSAM most recently launched the Goldman Sachs TreasuryAccess 0-1 Year ETF (GBIL), the first ETF to offer same-day settlement of creations and redemptions for authorised participants.