Goldman Sachs Access High Yield Corporate Bond ETF (Ticker: GHYB) Offers Smart Beta Bond Exposure
NEW YORK, September 7, 2017 – GSAM today announced the expansion of its Access suite of exchange-traded funds (“ETF”) with the launch of the Goldman Sachs Access High Yield Corporate Bond ETF (Ticker: GHYB). The fund seeks to offer lower-cost1 access to high yield corporate bond markets.
GHYB seeks to track the Citi Goldman Sachs High Yield Corporate Bond Index (the “Index”), which uses a transparent, rules-based methodology, aiming to exclude those bonds with the greatest potential to default or deteriorate in price. It is priced to investors at 34 basis points2 and will begin trading on the NYSE Arca on September 7 with $50 million in assets.
“The Goldman Sachs Access High Yield Corporate Bond ETF seeks to offer investors an innovative approach to access high yield corporate bonds, with a focus on eliminating underperforming assets to potentially provide a smoother ride and better risk-adjusted returns for investors,” said Michael Crinieri, GSAM’s Global Head of ETF Strategy. “With the addition of GHYB, our Access ETF lineup seeks to uniquely provide a desirable, steady income of bonds at a low-cost, focusing on the overall health of company, liquidity and fundamental factors.”
The Index is owned and calculated by FTSE Fixed Income LLC (the “Index Provider” or “FTSE”), using concepts developed with GSAM. The CITI mark is used under license by FTSE from Citigroup Index LLC or its affiliates. The Index measures the performance of high yield corporate bonds denominated in U.S. dollars that meet certain liquidity and fundamental screening criteria.
“High yield corporate bonds are a natural choice for investors seeking ways to generate yield in their portfolios,” said Jason Singer, portfolio manager for GHYB. “GHYB aims to address concerns surrounding high yield bonds, particularly that they can be less liquid and more prone to default, when compared to other sectors. GHYB seeks to offer a more thoughtful way to access the high yield market in a low-cost, transparent ETF wrapper.”
GHYB 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.3 GHYB joins GSAM’s first corporate credit ETF, the Goldman Sachs Investment Grade Corporate Bond ETF (Ticker: GIGB).
“With the Citi Goldman Sachs High Yield Corporate Bond Index, we’re excited to continue our relationship with GSAM, focused on designing indexes that seek to balance risk and exposure in a systematic manner,” said Arom Pathammavong, Managing Director, FTSE Russell.*
* On September 1, 2017, Citi Fixed Income Indices joined the London Stock Exchange Group’s Information Services division.
GSAM ETF Background
- GSAM started offering ETFs in September 2015 with the launch of the Goldman Sachs ActiveBeta® U.S. Large Cap Equity ETF (Ticker: GSLC). It now has 10 ETFs with over $5.6 billion in assets under management as of August 31, 2017.
- GSAM launched its first fixed income ETF, the Goldman Sachs TreasuryAccess 0-1 Year ETF4 (Ticker: GBIL) in September 2016.
- GSAM most recently launched the Goldman Sachs Access Investment Grade Corporate Bond ETF (Ticker: GIGB) and Goldman Sachs ActiveBeta® U.S. Small Cap Equity ETF (Ticker: GSSC) in June 2017.
- In February 2017, GSAM earned the ETF Achievement Award by Fund Action.5 GSAM was named the Most Innovative Issuer by ETF.com and GSLC was recognized as the Best New US Equity ETF and the Best New Smart Beta/Factor ETF in 2016.6
GSAM’s Access ETF line-up is below:
NAME |
TICKER |
LIST |
TOTAL EXPENSE RATIO |
Goldman Sachs Access Investment Grade Corporate Bond ETF7 |
GIGB |
6/8/17 |
14 |
Goldman Sachs Access High Yield Corporate Bond ETF8 |
GHYB |
9/7/17 |
34 |
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