The Goldman Sachs Access Investment Grade Corporate Bond ETF (Ticker: GIGB) Offers Smart Beta Bond Exposure
NEW YORK, June 8, 2017 – GSAM today announced the launch of GIGB, its first Access exchange-traded fund (“ETF”), which will offer lower-cost1 access to corporate bond markets.
GIGB seeks to track an index that uses a transparent, rules-based methodology, aiming to exclude bonds with the greatest potential to default or deteriorate in price. It is priced to investors at 14 basis points and will begin trading on the NYSE Arca on June 8 with $50 million in assets.
“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.
GIGB seeks to track the Citi Goldman Sachs Investment Grade Corporate Index (the “Index”), which is owned and calculated by Citigroup Index LLC (the “Index Provider”), 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.
“Investors need a smarter choice evaluating the overall health of companies” said Jason Singer, portfolio manager for GIGB. “By screening for both liquidity and fundamental factors, the Index seeks to limit exposure to illiquid, volatile and underperforming assets.”
GIGB will be managed by GSAM’s Global Fixed Income team whose deep market expertise and extensive resources will aid in trade execution and optimizing portfolio construction.
“We are pleased to further our relationship with GSAM with the release of a bespoke index, meticulously designed to balance exposure and risks in a systematic way,” said Arom Pathammavong, Global Head of Citi Fixed Income Indices.
GSAM ETF Background
- GSAM started offering ETFs in September 2015 with the launch of the Goldman Sachs ActiveBeta® US Large Cap Equity ETF (Ticker: GSLC). It now has ETFs with $4.1 billion in assets under management as of May 31, 2017.
- GSAM launched its first fixed income ETF, the Goldman Sachs TreasuryAccess 0-1 Year ETF (Ticker: GBIL) in September 2016.
- GSAM most recently launched the Goldman Sachs Hedge Industry VIP ETF (Ticker: GVIP), an ETF seeking to track Goldman Sachs’ proprietary Hedge Fund VIP Index.
- In February 2017, GSAM earned the ETF Achievement Award by Fund Action2. 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 20163.
