Goldman Sachs Asset Management launched its first in a series of fixed income ETFs. It’s Goldman Sachs Access Investment Grade Corporate Bond ETF (GIGB) tracks an index that uses a transparent, rules-based methodology designed to exclude bonds that have the greatest potential to default or deteriorate in price.
The ETF began trading trading on the NYSE Arca on June 8 with $50 million in assets and has an expense ratio of 14 basis points.
“This is a unique opportunity to revolutionize the fixed income ETF space, providing investors with exposure to bond markets while seeking to deliver smoother performance at a lower cost,” said Michael Crinieri, GSAM’s global head of ETF strategy, in a statement.
GIGB tracks the Citi Goldman Sachs Investment Grade Corporate Index, which is owned and calculated by Citigroup Index LLC, using concepts developed with GSAM. The index measures the performance of investment grade, corporate bonds denominated in U.S. dollars that meet certain liquidity and fundamental screening criteria and screens for liquidity and fundamental factors to limit exposure to illiquid, volatile and underperforming assets.
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GIGB is managed by GSAM’s Global Fixed Income team whose deep market expertise and extensive resources will aid in trade execution and optimizing portfolio construction.
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