A new lineup of exchange-traded funds (ETFs) that manage risk
and use momentum strategies has been introduced by ALPS
Unlike traditional equity index funds, the latest ETFs from ALPS
will shift assets based upon factors like historical volatility and
market correlations. The funds use benchmarks developed by Goldman
"ALPS is excited to introduce ETFs based on the Goldman Sachs
indices to our suite of ETFs" said Tom Carter, Executive Vice
President of ALPS Holdings.
The new ALPS/GS Momentum Builder and risk managed funds are the
--ALPS/GS Momentum Builder Growth Markets Equities and US
Treasuries Index ETF (NYSEARCA:GSGO)
--ALPS/GS Momentum Builder Multi-Asset Index ETF (NYSEARCA:GSMA)
--ALPS/GS Momentum Builder Asia ex-Japan Equities and US Treasuries
Index ETF (NYSEARCA:GSAX)
--ALPS/GS Risk-Adjusted Return US Large Cap Index ETF
Three of the new ETFs tracking the "GS Momentum Builder" model
attempt to capture momentum exposure to multiple asset classes
using a risk control mechanism. The funds use a systematic
trading strategy that dynamically allocates across a basket of
assets based on historical price momentum and volatility.
The fourth ETF, GSRA aims to mimic stocks with the highest
risk-adjusted returns using 12-month volatility-adjusted consensus
price targets for the stocks in the Russell 1000 index.
"This collaboration helps us achieve our shared goal of
providing ETF investors with thoughtful index-based investment
alternatives with various types of market exposures" said Federico
Gilly, managing director and head of the Equity Sales Strats and
Structuring Group at Goldman Sachs.
Goldman Sachs' New York-based Exchange Traded Product
Structuring team, which is part of the firm's Securities Division,
specializes in creating indices for a wide range of investor
GSRA charges 0.55% annually while the other ALPS/GS ETFs charge
Dividends for the ALPS/GS ETFs are paid quarterly.
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