A New Goldman ETF to Play Popular Hedge Fund Stock Picks

Current top holdings include United Continental Holdings (NYSE: UAL) 2.5%, Delta Air Lines (NYSE: DAL) 2.4%, Citizens Financial Group (NYSE: CFG) 2.3%, Level 3 Communications (NYSE: LVLT) 2.3% and Bank of America (NYSE: BAC) 2.3%.


Sector weights include information technology 28.1%, consumer discretionary 18.1%, financials 13.1%, health care 12.6%, industrials 11.2%, telecom services 4.5%, energy 4.0, materials 3.9%, consumer staples 2.1% and real estate 2.1%.

Goldman’s newly filed fund will join a handful of other hedge fund-replication ETFs already in the space. For instance, the Global X Guru Index ETF (NYSEArca: GURU) includes high conviction picks taken from a select pool of hedge fund 13F information. The Global X Guru Activist Index ETF (NasdaqGS: ACTX) takes the guru ETF concept a step further by focusing on companies where an activist investor, such as Bill Ackman or Carl Icahn, is angling for change. The AlphaClone Alternative Alpha ETF (NYSEArca: ALFA) is another option to track hedge fund picks, utilizing a “Clone Score” methodology to pick alpha, or outperformance, potential from institutional-sized investors.

Potential investors, though, should be aware that these types of hedge-fund-clone strategies rely on old data and may not perfectly reflect current hedge fund investor holdings. Hedge fund managers report their U.S. equity holdings, but the 13F disclosures are made public 45 days after the end of each calendar quarter.

For more information on new fund products, visit our new ETFs category.