Financial giant Goldman Sachs (NYSE: GS) may be close to launching its first exchange traded fund. The firm already manages an exchange traded note, the $74 million GS Connect S&P GSCI Enhanced Commodity Total Return Strategy Index (NYSEArca: GSC).
According to Oliver Ludwig for Index Universe, the stock index backing the fund proposed in the SEC pipeline will use five year beta measures and eliminate the top 30% by weight, as represented in the U.S. equity market. The other stocks in the index will be ranked by an indexing measure that considers book value, return on equity and dividend payout. [Direxion Prepares ‘Quant-Weighted’ ETFs]
The indexing method that weights companies within the S&P 500 by particular fundamentals is an easier alternative for those investors seeking active management. The 2,000 stock index will be re-balanced twice a year to eliminate or add companies the fit the required guidelines. [Over 1,000 ETFs And Rising]
Paperwork is also indicating that Goldman Sachs is filing for a fund-of-funds ETF, with a lin-up of others including fixed-income and blended portfolios. The details of the proposed funds such as expense ratios and ticker symbols are not yet disclosed, according to the report.
Tisha Guerrero contributed to this article.
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.