Goldman Sachs to Create an ETF Trust
December 28, 2009
Goldman Sachs has applied to the Securities and Exchange Commission to create a trust that will create and operate exchange-traded funds, with the first fund to be based on international stocks.
The initial fund, will "be maintained by an index provider unaffiliated with" Goldman Sachs and "will offer an extensive representation of the Brazilian, Indian, Chinese and Korean markets," according to the filing.
The funds will target "companies with a market capitalization within the top 85% of their investable equity universe, subject to a global minimum size requirement,'' the filing said.
The funds will use one of two strategies: a ''replication'' of substantially all th component stocks in an index or a "representative sampling of many of the stocks in the index, with the objective "to match the risk and return characteristics" of the index.
The Goldman Sachs ETF Trust will be based domiciled in Delaware.
