Goldman Sachs announced they’re selling the widely tracked commodity index, and two stock-benchmark families, which form the basis of exchange traded funds (ETFs) to Standard and Poor’s. John Spence of MarketWatch.com reports S&P is acquiring the Goldman Sachs Commodity Index (GSCI), the Goldman Sachs Sector Indexes, and the Goldman Sachs Technology Index, and six technology sub-indexes. The GSCI is one of the most widely used indexes. Some of the indexes involved form the basis of ETFs provided by Barclay’s Global Investors, such as Goldman Sachs Seminconductor (IGW) and Goldman Sachs Technology (IGM).
Some insiders think the index selling may be designed to head off any perceived conflicts of interest as the firm is one of the largest securities traders. Others say maybe this is simply a desire to exit a low-margin index business with high fixed costs. Whatever the reason, the impact for ETF shareholders is minimal and should just be a name change.
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