Goldman Sachs Asset Management Launches ETF Based on Hedge Fund VIP Index

Nov 3 2016 | 9:15pm ET

Goldman Sachs Asset Management has launched a new exchange-traded fund designed to track the company’s well-known Hedge Fund VIP Index.

The new ETF, which carries the symbol GVIP, provides specific exposure to GSAM’s so-called “very important positions” – i.e. U.S. listed stocks that appear most frequently among the top ten long equity holdings of the 650-odd fundamentally-driven managers tracked by the firm. The VIP group of stocks has become a staple of a report put out by Ben Snider and David Kostin in Goldman’s research division  

The underlying index consists of a focused, U.S.-listed stock portfolio of 50 U.S.-listed holdings, GSAM said in a statement. The ETF will carry a large-cap bias that can complement a core equity portfolio, and began trading on November 3, 2016 with $20 million in assets. It will charge only 45 basis points and compete with hedge fund tracker ETFs from firms such as GlobalX and Alphaclone. 

“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, in a statement.

GSAM’s Hedge Fund VIP Index is constructed in accordance with a rules-based methodology derived from concepts previously developed by Goldman Sachs’ Global Investment Research division and calculated by Solactive AG. It will be equally weighted and includes stocks owned by hedge fund managers holding between 10 and 200 distinct equity positions as reported in their current regulatory filings.

GSAM is the asset management arm of Goldman Sachs, which supervises more than $1.35 trillion in assets as of September 30, 2016.  The unit offers investment strategies across a broad range of asset classes to institutional and individual clients globally. 

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