On Thursday, Goldman Sachs Asset Management, L.P. (GSAM) announced the launch of the Goldman Sachs Access U.S. Aggregate Bond ETF (GCOR), a fund that seeks to offer smart beta exposure to the total investment grade U.S. bond market. GCOR is competitively priced to investors at 14 basis points and is GSAM’s seventh Access fixed income ETF.
GCOR is the first aggregate bond ETF offered by GSAM, which will provide investors exposure across the bond market, including the U.S. Treasury, government-sponsored, asset-backed, mortgage-backed, and corporate bonds. The underlying index has been designed to minimize exposure to issuers showing certain signs of deterioration through the use of certain liquidity and fundamental screening criteria.
“You want something that’s fact-based and passive, and here it is. It’s rules-based and it’s repeatable, and you can absolutely look under the hood, but it is driven by how our active managers and our fundamental equities team think about the world,” says Steve Sachs, Managing Director of Goldman Sachs.
“We pride ourselves on our ability to deliver innovative products that meet client demand and market need, as we have continued to do with our Access fixed income ETF suite,” said Michael Crinieri, GSAM’s Global Head of ETF Strategy. “GCOR will provide investors with a simple and transparent aggregate exposure that is enhanced by GSAM’s proprietary smart beta strategies, all backed by the global platform and resources of Goldman Sachs.”
The fund seeks to track the FTSE Goldman Sachs US Broad Bond Market Index, owned and calculated by FTSE Fixed Income LLC (the “Index Provider” or “FTSE”) using concepts developed with GSAM. The Index uses a transparent, rules-based methodology, designed to measure the performance of bonds that meet certain liquidity and fundamental screening criteria.
GCOR 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.
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