Wealth Manager - the site for professional investment managers

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!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Citywire TV
Play Navigating geopolitical risk with ETFs

Navigating geopolitical risk with ETFs

ETFGI’s Deborah Fuhr on how investors can use exchange-traded funds to position their portfolio.

Play Sarasin’s Boucher: why I like salmon with chocolate

Sarasin’s Boucher: why I like salmon with chocolate

Henry Boucher, manager of the £129 million Sarasin Food & Agriculture Opportunities fund, explains why he is gobbling up salmon and chocolate stocks.

Play Alibaba hype, the UK slowdown and opportunities in European sovereign bonds

Alibaba hype, the UK slowdown and opportunities in European sovereign bonds

Libby Ashby and leading wealth managers analyse what the Alibaba IPO hype means for Chinese equities, slowing growth of the UK economy and whether there’s anything left to play for in the European sovereign bond market.

Your Business: Cover Star Club

Profile: How David Esfandi is shaping Canaccord Genuity WM

Profile: How David Esfandi is shaping Canaccord Genuity WM

After six months as chief executive of Canaccord Genuity David Esfandi's ambitions are taking shape

Wealth Manager on Twitter