Welcome to our new website! Let us know what you think..

Register to get unlimited access to all of Citywire’s Fund Manager database. Registration is free and only takes a minute.

Goldman Sachs partners Source for ‘equity factor’ ETF

Goldman Sachs partners Source for ‘equity factor’ ETF

Source has launched an exchange-traded fund (ETF) that will track a Goldman Sachs index based on ‘equity factors’.

The Source Goldman Sachs Equity Factor Index World Ucits ETF will contain a portfolio that emphasises five equity market factors: size, value, momentum, quality and low beta.

Quentin Andre, co-head of equity structuring and marketing for Europe, the Middle East and Africa at Goldman Sachs, explained: ‘Factor investing is nothing new. However, individual factor returns sometimes diverge significantly from established benchmarks and can add significant risk to a portfolio. To achieve consistent outperformance, diversification is key. We have selected five factors – all well-supported by academic research – and developed an index that delivers efficient, diversified exposure.’

Source’s chief executive Ted Hood added: ‘Academic research recognises the importance of combining equity factors but before this listing there was no way of harnessing their combined ability to deliver outperformance using an ETF.’

Listed on the London Stock Exchange, the ETF’s management fee is 0.65% per annum.

Leave a comment
Citywire TV
Play BlackRock UK Special Sits: when will we sell our star holdings?

BlackRock UK Special Sits: when will we sell our star holdings?

What would prompt Roland Arnold to sell the likes of Ashtead and Howden?

Play AA-rated Lofthouse: 'maverick' tobacco settlements won't stop M&A

AA-rated Lofthouse: 'maverick' tobacco settlements won't stop M&A

Henderson International Income trust manager Ben Lofthouse shares his thoughts on recent developments in the tobacco sector in this video.

1 Play Renewable energy: what I found on my solar farm trip

Renewable energy: what I found on my solar farm trip

Renewable energy is attracting a lot of investor interest, so I headed to the UK's largest solar farm to find out more.

Your Business: Cover Star Club

Profile: how Matthew Butcher is carving a new role at Dart Capital

Profile: how Matthew Butcher is carving a new role at Dart Capital

The wealth management industry is undergoing a profound period of change: whether it wants to admit it or not.

Wealth Manager on Twitter