The Goldman Sachs Group recently launched its first exchange traded note (ETN), which is a close relative to the exchange traded fund (ETF). This makes the Goldman Sachs Group the second bank to offer an ETN. The new ETN is the GS Connect S&P GSCI Enhanced Commodity Total Return Strategy Index ETN (GSC) and is available through the NYSE. GSC is the ninth ETN to list on this particular exchange and will charge 1.3% in annual fees.
According to Matt Hougan for Index Universe, GSC tracks a tweaked version of the S&P GSCI Index. This is the same index that the iPath S&P GSCI Total Return Index ETN (GSP) and the iShares S&P GSCI Commodity-Indexed Trust (GSG) follow. GSC will attempt to boost returns in the same way that the PowerShares DB Commodity Index Tracking Fund (DBC) does. DBC invests in a portfolio of the index commodities futures that are light, sweet crude oil; heating oil; aluminum; gold; corn and wheat.
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