With financial advisors attempting to find the happy medium between cost-efficient passive exchange-traded funds and expensive actively-managed mutual funds, global investment management firm Goldman Sachs fills that void with its Goldman Sachs ActiveBeta US LgCp Eq ETF (NYSEArca: GSLC).
The focus of GSLC is to seek investment results that closely correspond to the performance of the Goldman Sachs ActiveBeta® U.S. Large Cap Equity Index. In order to achieve this, 80 percent of its assets are held in securities within the underlying index.
With an expense ratio of 0.09 percent, it is about five times cheaper than the average ETF and 10 times cheaper than the average mutual fund. Rather than rely heavily on active managers, GSLC helps curb the costs by using a multi-factor investing strategy that leans on four factors–value, momentum, quality and low volatility.