In an aging bull market rally, exchange traded fund investors will have to be more meticulous in selecting positions, but they can take cues from a broad array of professional investors and hedge fund managers.
On the upcoming webcast, An ETF to Follow Hedge Fund Managers’ ‘Very-Important-Positions’, Candice Tse, Vice President of Strategic Advisory Solutions at Goldman Sachs Asset Management, Nadia Papagiannis, Director of Alternative Investment Strategy for Global Third Party Distribution at Goldman Sachs Asset Management, and Zahid Nakhooda, Vice President of ETF Product Specialist at Goldman Sachs Assest Management, will dive into high-conviction investment ideas from some of the leading investors in the financial markets and highlight a cost effective, tax-efficient strategy that helps provide exposure to these picks.
Specifically, the recently launched Goldman Sachs Hedge Industry VIP ETF (NYSEArca: GVIP) tries to reflect the performance of the Goldman Sachs Hedge Fund VIP Index, which targets 50 “Very-Important-Positions” or U.S.-listed stocks that most often appear in the top 10 holdings of over 650 hedge fund managers, managing $700 billion in equity.
The hedge fund-related ETF is based on a popular report put out by Goldman analysts Ben Snider and David Kostin in the Wall Street bank’s research division.
The underlying GS 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. The ETF allows retail investors and financial advisors to capitalize on the extensive resources of a leading global investment firm and and gain exposure to the analysis of investing trends in the hedge fund universe, providing investors access to an advanced investment solution through a low-cost ETF wrapper.
Top holdings include Liberty Global PLC 2.1%, Abbott Laboratories 2.1%, PayPal Holdings 2.1%, Reynolds American 2.1% and Broadcom 2.1%.
Sector weights include information technology 30.6%, consumer discretionary 26.2%, financials 16.0%, health care 8.2%, consumer staples 6.2%, telecom services 4.1%, industrials 4.0%, materials 2.0%, real estate 2.0% and energy 1.9%.
Financial advisors who want to learn more about a hedge fund replication strategy can register for the Tuesday, February 28 webcast here.