Goldman Sachs Asset Management debuted a new ETF today that offers smart beta exposure to 1-5 year investment grade corporate bonds.
The Goldman Sachs Access Investment Grade Corporate 1-5 Year Bond ETF (NYSEArca: GSIG) is priced to investors at 14 basis points and is GSAM’s sixth Access fixed income ETF.
GSIG is its second investment grade corporate bond ETF – focused on bonds at the front end of the yield curve with 5-year maturities or shorter. GSAM’s first investment grade corporate bond ETF, Goldman Sachs Access Investment Grade Corporate Bond ETF (GIGB), gives broader exposure to the investment grade corporate bond market. We are pleased to provide investors with additional options to gain exposure to corporate credit. We believe the underlying Index methodology, which has been designed to minimize exposure to issuers showing certain signs of deterioration, is particularly relevant given today’s uncertain economic outlook.
Michael Crinieri, GSAM’s Global Head of ETF Strategy, said they continue to build out its suite of fixed income ETF products, working closely with their clients and index providers.
“The addition of GSIG to our Access suite aims to provide investors an attractive option to get simple, transparent and liquid access to the investment grade credit market, in a competitively priced vehicle backed by the global platform and resources of Goldman Sachs,” Crinieri said.
GSIG seeks to track the FTSE Goldman Sachs US Investment-Grade Corporate Bond 1-5 Years Index, owned and calculated by FTSE Fixed Income LLC (the “Index Provider” or “FTSE”) using concepts developed with GSAM. The Index uses a transparent, rules-based methodology, designed to measure the performance of bonds that meet certain liquidity and fundamental screening criteria.
GSIG will be passively managed by GSAM’s Global Fixed Income team, whose deep market expertise and extensive resources will aid in trade execution and optimizing portfolio construction.
GSAM’s complete Access ETF suite is below:
| Fund Name | Ticker | Inception Date |
Total Expense Ratio (basis points) |
| Goldman Sachs Access Treasury 0-1 Year ETF | GBIL | 9/6/16 | 0.12% |
| Goldman Sachs Access Ultra Short Bond ETF | GSST | 4/15/19 | 0.16% |
| Goldman Sachs Access Inflation Protected USD Bond ETF | GTIP | 10/2/18 | 0.12% |
| Goldman Sachs Access Investment Grade Corporate 1-5 Year Bond ETF | GSIG | 7/7/20 | 0.14% |
| Goldman Sachs Access Investment Grade Corporate Bond ETF | GIGB | 6/6/17 | 0.14% |
| Goldman Sachs Access High Yield Corporate Bond ETF | GHYB | 9/5/17 | 0.34% |
GSAM is the asset management arm of The Goldman Sachs Group, Inc. (NYSE: GS), which supervises more than $1.6 trillion in assets as of March 31, 2020.
