NEW YORK--(BUSINESS WIRE)--Goldman Sachs Asset Management (“GSAM”) today launched an ETF seeking to track the Goldman Sachs Hedge Fund VIP Index (the “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 $700 billion in equity.1 GVIP is competitively priced2 to shareholders at 45 basis points (bps) and will begin trading on the NYSE Arca, Inc. on November 3, 2016 with $20 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,” said 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 AG, 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.3
GSAM started offering ETFs in September 2015 with the launch of Goldman Sachs ActiveBeta® U.S. Large Cap Equity ETF (Ticker: GSLC). GSAM now offers seven ETFs with $2.5 billion in assets as of September 30, 2016. GSAM most recently launched the Goldman Sachs TreasuryAccess 0-1 Year ETF (Ticker: GBIL), the first ETF to offer same-day settlement of creations and redemptions for authorized participants.
In March 2016, GSAM was named the Most Innovative Issuer by ETF.com and GSLC was recognized as the Best New US Equity ETF and the Best New Smart Beta/Factor ETF.4
GSAM is the asset management arm of The Goldman Sachs Group, Inc. (NYSE: GS), which supervises over $1 trillion in assets as of September 30, 2016.5 Goldman Sachs Asset Management has been providing discretionary investment advisory services since 1988 and has investment professionals in all major financial centers around the world. The company offers investment strategies across a broad range of asset classes to institutional and individual clients globally. Founded in 1869, Goldman Sachs is a leading global investment banking, securities and investment management firm that provides a wide range of financial services to a substantial and diversified client base that includes corporations, financial institutions, governments and high-net-worth individuals.
1 Source: GS Global Investment Research (GIR) as of September 30, 2016.
2 Source: ETF.com as of September 30, 2016. In seeking to track the Index, the holdings of the GVIP ETF are equal dollar-weighted at each quarterly Index rebalance. The average fee for equal-weighted US ETFs is 52 bps and the average fee for equal-weighted US Large Cap ETFs is 40bps.
3 A Form 13F filing is a quarterly report required for any hedge fund manager with over $100 million invested in U.S. equities.
4 Source: ETF.com website. Winners were selected by a majority vote of the ETF.com Awards Selection Committee, a group of independent ETF experts throughout the ETF community.
5 Assets Under Supervision (AUS) includes assets under management and other client assets for which Goldman Sachs does not have full discretion.
The Fund is not a hedge fund and does not invest in hedge funds.
Individual shares of GVIP may only be purchased and sold in secondary market transactions through brokers; shares trade at market prices rather than NAV; shares may trade at a price greater than or less than NAV; and investors may incur commission costs when buying or selling shares.
Fund Risk Considerations:
The Goldman Sachs Hedge Industry VIP ETF (the “Fund”) seeks to provide investment results that closely correspond, before fees and expenses, to the performance of the Goldman Sachs Hedge Fund VIP Index (the “Index”), which delivers exposure to equity securities whose performance is expected to influence the long portfolios of hedge funds. The Fund’s equity investments are subject to market risk, which means that the value of the securities in which it invests may go up or down in response to the prospects of individual companies, particular sectors and/or general economic conditions. Because the Fund may concentrate its investments in an industry or group of industries to the extent that the Index is concentrated, the Fund may be subject to greater risk of loss as a result of adverse economic, business or other developments affecting that industry or group of industries. The Fund is not actively managed, and therefore the Fund will not generally dispose of a security unless the security is removed from the Index. The Index calculation methodology may rely on information based on assumptions and estimates and neither the Fund nor its investment adviser can guarantee the accuracy of the methodology’s assessment of included issuers. Because certain information used to construct the Index may be stale at the time of its use and due to other reasons, the Index may not be effective in delivering exposure to equity securities whose performance is expected to influence the long portfolios of hedge funds. Performance may vary substantially from the performance of the Index as a result of transaction costs, expenses and other factors. The Fund is not a hedge fund and does not invest in hedge funds.
The Goldman Sachs TreasuryAccess 0–1 Year ETF (the “Fund”) seeks to provide investment results that closely correspond, before fees and expenses, to the performance of an Index that is designed to measure the performance of U.S. Treasury Obligations with a maximum remaining maturity of 12 months. The Fund’s investments are subject to the risks associated with debt securities generally, including credit, liquidity and interest rate risk. Any guarantee on U.S. Treasury Obligations applies only to the underlying securities of the Fund if held to maturity and not to the value of the Fund’s shares. The Fund is not actively managed, and therefore the Fund will not generally dispose of a security unless the security is removed from the Index. Performance may vary substantially from the performance of the Index as a result of transaction costs, expenses and other factors. The Fund is not a money market fund and does not attempt to maintain a stable net asset value.
The Goldman Sachs ActiveBeta® U.S. Large Cap Equity ETF (the “Fund”) seeks to provide investment results that closely correspond, before fees and expenses, to the performance of the Goldman Sachs ActiveBeta® U.S. Large Cap Equity Index (the “Index”), which delivers exposure to equity securities of large-capitalization U.S. issuers. The Fund’s equity investments are subject to market risk, which means that the value of the securities in which it invests may go up or down in response to the prospects of individual companies, particular sectors and/or general economic conditions. Because the Fund may concentrate its investments in an industry or group of industries to the extent that the Index is concentrated, the Fund may be subject to greater risk of loss as a result of adverse economic, business or other developments affecting that industry or group of industries. The Fund is not actively managed, and therefore the Fund will not generally dispose of a security unless the security is removed from the Index. The Index calculation methodology may rely on information based on assumptions and estimates and neither the Fund nor its investment adviser can guarantee the accuracy of the methodology’s assessment of included issuers. Performance may vary substantially from the performance of the Index as a result of transaction costs, expenses and other factors.
Fund shares are not individually redeemable and are issued and redeemed by the Fund at their net asset value (“NAV”) only in large, specified blocks of shares called creation units. Shares otherwise can be bought and sold only through exchange trading at market price (not NAV). Shares may trade at a premium or discount to their NAV in the secondary market. Ordinary brokerage commissions apply. Brokerage commissions will reduce returns.
The Goldman Sachs Hedge Fund VIP Index (the “Index”) consists of hedge fund managers’ “Very-Important-Positions,” or the US-listed stocks whose performance is expected to influence the long portfolios of hedge funds. Those stocks are defined as the positions that appear most frequently among the top 10 long equity holdings of U.S. hedge fund managers that select their investments based upon fundamental analysis.
Please note that one may not invest directly into an index.
The Funds are newly or recently organized and have limited or no operating history.
ActiveBeta® is a registered trademark of GSAM and has been licensed for use by Goldman Sachs ETF Trust. The ActiveBeta® Portfolio Construction and Maintenance Methodology is the patent-protected property of GSAM (U.S. Patent Numbers 8,285,620 and 8,473,398).
GSAM leverages the resources of Goldman, Sachs & Co. subject to legal, internal and regulatory restrictions.
Basis points (bps) are equal to .01% (or 1/100th) of a percent.
Tax Efficiency refers to low portfolio turnover which can help manage the impact of capital gains taxes.
Goldman Sachs does not provide accounting, tax, or legal advice. Notwithstanding anything in this document to the contrary, and except as required to enable compliance with applicable securities law, you may disclose to any person the US federal and state income tax treatment and tax structure of the transaction and all materials of any kind (including tax opinions and other tax analyses) that are provided to you relating to such tax treatment and tax structure, without Goldman Sachs imposing any limitation of any kind. Investors should be aware that a determination of the tax consequences to them should take into account their specific circumstances and that the tax law is subject to change in the future or retroactively and investors are strongly urged to consult with their own tax advisor regarding any potential strategy, investment or transaction.
The website links provided are for your convenience only and are not an endorsement or recommendation by GSAM of any of these websites or the products or services offered. GSAM is not responsible for the accuracy and validity of the content of these websites.
GOLDMAN SACHS ASSET MANAGEMENT, L.P., THE GOLDMAN SACHS GROUP, INC., AND GOLDMAN, SACHS & CO. (collectively, “GOLDMAN SACHS”) DOES NOT GUARANTEE NOR MAKES ANY REPRESENTATION OR WARRANTY, EXPRESS OR IMPLIED, TO THE OWNERS OR SHAREHOLDERS OF THE FUND OR ANY MEMBER OF THE PUBLIC REGARDING THE ADVISABILITY OF INVESTING IN SECURITIES GENERALLY OR IN THE FUND PARTICULARLY OR THE ABILITY OF THE INDEX TO TRACK GENERAL MARKET PERFORMANCE. GOLDMAN SACHS, IN ITS CAPACITY AS THE INDEX PROVIDER OF THE INDEX, LICENSES CERTAIN TRADEMARKS AND TRADE NAMES TO THE FUND. GOLDMAN SACHS HAS NO OBLIGATION TO TAKE THE NEEDS OF THE FUND OR THE SHAREHOLDERS OF THE FUND INTO CONSIDERATION IN DETERMINING, COMPOSING OR CALCULATING THE INDEX. GOLDMAN SACHS OR ANY OF ITS AFFILIATES MAY HOLD LONG OR SHORT POSITIONS IN SECURITIES HELD BY THE FUND OR IN RELATED DERIVATIVES INCLUDING THOSE LINKED TO THE INDEX.
GOLDMAN SACHS DOES NOT GUARANTEE THE ADEQUACY, TIMELINESS, ACCURACY AND/OR THE COMPLETENESS OF THE INDEX OR ANY DATA RELATED THERETO. GOLDMAN SACHS HEREBY EXPRESSLY DISCLAIMS ANY AND ALL LIABILITY FOR ANY ERRORS, OMISSIONS, OR INTERRUPTIONS THEREIN OR IN THE CALCULATION THEREOF. GOLDMAN SACHS MAKES NO WARRANTY, EXPRESS OR IMPLIED, AND EXPRESSLY DISCLAIMS ALL WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR USE WITH RESPECT TO THE MARKS, THE INDEX OR ANY DATA INCLUDED THEREIN AS TO THE RESULTS TO BE OBTAINED BY THE FUND, THE SHAREHOLDERS, OR ANY OTHER PERSON OR ENTITY FROM USE OF THE INDEX OR ANY DATA INCLUDED THEREIN. WITHOUT LIMITING ANY OF THE FOREGOING GOLDMAN SACHS HEREBY EXPRESSLY DISCLAIMS ANY AND ALL LIABILITY FOR ANY SPECIAL, PUNITIVE, INDIRECT, OR CONSEQUENTIAL DAMAGES (INCLUDING LOST PROFITS), EVEN IF ADVISED OF THE POSSIBILITY OF SUCH DAMAGES.
ALPS Distributors, Inc. is the distributor of the Goldman Sachs ETF Trust.
ALPS Distributors, Inc. is unaffiliated with Goldman Sachs Asset Management.
ALPS Distributors, Inc. does not provide accounting, tax or legal advice.
Please consider a Fund's objectives, risks, and charges and expenses, and read the summary prospectus, if available, and the Prospectus carefully before investing. A summary prospectus, if available, or a Prospectus for the Fund containing more information may be obtained from your authorized dealer or from Goldman, Sachs & Co. by calling (1-800-621-2550).
Compliance code: 66259-OTU
Date of first use: 11/3/2016
ALPS Control: GST 294 ED 11/2/2017
© 2016 Goldman Sachs. All rights reserved.
NOT FDIC INSURED. MAY LOSE VALUE. NO BANK GUARANTEE. NOT INSURED BY ANY GOVERNMENT AGENCY.