Friday, December 21, 2012
ALPS and Goldman Launch Four ETFs
Reported by Tommy Fernandez
] has partnered withALPS
] to launch four new ETFS.
Three of the new ETFs seek to track Goldman Sachs indices based on the GS Momentum Builder
framework which seeks to capture momentum exposure to select asset classes or markets with a risk control mechanism. The fourth ETF seeks to track a Goldman Sachs index that reflects a hypothetical portfolio of U.S. stocks that are anticipated to have the highest risk-adjusted returns based on volatility adjusted target prices of a consensus of industry analysts for the stocks in the Russell 1000 Index.
The full press release is below:
Company Press Release
ALPS Announces the Launch of New ETFs by Teaming Up With Goldman Sachs
Four New ETFs Launched Based on Goldman Sachs Proprietary Indices
DENVER--ALPS, A DST Company, announced today the launch of four new exchange-traded funds (ETFs) each of which seeks to track a Goldman Sachs proprietary index.
Three of the new ETFs seek to track Goldman Sachs indices based on the “GS Momentum Builder®” framework which seeks to capture momentum exposure to select asset classes or markets with a risk control mechanism. The fourth ETF seeks to track a Goldman Sachs index that reflects a hypothetical portfolio of U.S. stocks that are anticipated to have the highest risk-adjusted returns based on volatility adjusted target prices of a consensus of industry analysts for the stocks in the Russell 1000® Index.
The three Momentum Builder Index ETFs are the ALPS/GS Momentum Builder® Growth Markets Equities and U.S. Treasuries Index ETF (GSGO), the ALPS/GS Momentum Builder® Multi-Asset Index ETF (GSMA) and the ALPS/GS Momentum Builder® Asia ex-Japan Equities and U.S. Treasuries Index ETF (GSAX). The fourth product is the ALPS/GS Risk-Adjusted Return U.S. Large Cap Index ETF (GSRA).
“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.
“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 classes.
About Goldman Sachs
The Goldman Sachs Group, Inc. is a leading global investment banking, securities and investment management firm that provides a wide range of financial services to a substantial and diversified client base that includes corporations, financial institutions, governments and high-net-worth individuals. Founded in 1869, the firm is headquartered in New York and maintains offices in all major financial centers around the world.
A wholly owned subsidiary of DST Systems, Inc., headquartered in Denver with offices in Boston, New York, Seattle, and Toronto, ALPS is a 27-year-old financial services firm focused on asset servicing and asset gathering. With more than 400 employees, over 200 clients, and an executive team that has been in place for over 18 years, ALPS continues to actively promote all of its various business segments, from asset servicing through ALPS Fund Services, Inc. to asset gathering through ALPS Distributors, Inc. and ALPS Advisors, Inc. As of September 30, 2012, the firm managed more than $7.6 billion in assets and provided servicing to more than $365 billion in client assets. For more information about ALPS and the services available, visit www.alpsinc.com, and for additional information about ALPS products, visit www.alpsfunds.com.
There are risks involved with investing in ETFs including the loss of money. Additional information regarding the risks of this investment is available in the prospectus.
The ALPS/GS Risk-Adjusted Return U.S. Large Cap Index ETF, ALPS/GS Momentum Builder® Growth Markets Equities and U.S. Treasuries Index ETF, ALPS/GS Momentum Builder® Multi-Asset Index ETF and the ALPS/GS Momentum Builder® Asia ex-Japan Equities and U.S. Treasuries Index ETF are new products with a limited operating history.
The Momentum Builder ETFs seek to track a momentum strategy index and, as a result, may experience more volatility than funds that track more broadly based conventional indexes.
The Index Methodology for the ALPS/GS Risk-Adjusted Return U.S. Large Cap Index ETF uses I/B/E/S consensus 12-month target prices adjusted by their historic six-month realized volatility to select stocks for inclusion in the Index. Such consensus target prices are subject to revision and may not be reliable predictors of future stock prices. If I/B/E/S consensus target prices are unreliable or cease to be available, the stocks selected by the Methodology may not be the optimal selection of stocks for the Index, which may cause the value of the Index and/or the Fund to be less than it would be if another input were used for stock selection.
The ETFs are subject to the additional risks associated with concentrating its investments in companies in the market sector.
The Russell 1000 Index measures the performance of the large-cap segment of the U.S. equity universe. It is a subset of the Russell 3000 Index and includes approximately 1000 of the largest securities based on a combination of their market cap and current index membership. The Russell 1000 represents approximately 92% of the U.S. market.
ALPS Distributors, Inc. is the Distributor of the ALPS | Goldman Sachs ETF Series
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