.GoldmanSachs ETF chief Steve Sachs breaks down a new investment trend (via ETFEdgeCNBC)
div > div.group > p:first-child"> The big bank has doubled down on a concept called smart beta, which blends passive and active investing strategies to build portfolios based on non-traditional metrics. At Goldman, the strategy is branded as ActiveBeta and revolves around four factors: value, quality, momentum and low volatility.
The large-cap ETF counts the stocks of technology giants Microsoft, Apple, Amazon and Facebook among its holdings and has attracted nearly $5 billion in assets from investors, according to Sachs. "We think single-factor investing is very, very difficult," he said."Very hard to time factors. Very hard to pick which one is going to be in favor this year. When you combine four factors like the ones that we do, they actually have a very low — or even, in most cases, very negatively correlated — relationship to each other."
Not everyone's convinced by Goldman's new strategy. Dan Wiener, chairman of Adviser Investments, drew a comparison with Vanguard, which introduced its own factor-based investing products a year ago.
Australia Latest News, Australia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Goldman Sachs' top US ETF trader has left for rival JPMorganAnother senior equities trader has left Goldman Sachs. The firm's head of US ETF trading is going to rival JPMorgan.
Read more »
Goldman Sachs CEO: The US economy 'is chugging along pretty well'Goldman Sachs Chief Executive David Solomon said Wednesday that the chances of the U.S. economy soon entering a recession are lower now than they were earlier this year.
Read more »
Goldman Sachs expects weak earnings growth across all major markets in 2019Goldman Sachs expects weak earnings growth across all major markets in 2019, Goldman Sachs' chief global equity strategist Peter Oppenheimer told CNBC's Squawk Box.
Read more »
Goldman Sachs is cutting nearly 100 jobs after its profits tumbledGoldman Sachs is the latest bank to cut jobs after reporting lower than expected first quarter results.
Read more »
Upstart Russian oil firm, with Goldman Sachs backing, bucks industry bluesIn the frozen taiga of eastern Siberia, where bears roam in spring after waking ...
Read more »
Goldman Sachs’ stock leads Dow losers after first revenue miss in 2 yearsShares of Goldman Sachs Group Inc. took a hit Monday, after the blue-chip bank beat earnings expectations by a wide margin again, but missed on revenue for...
Read more »
As Goldman Sachs drags on financials, Cramer and other experts weigh in on bank earningsAhead of earnings from Bank of America and Morgan Stanley later this week, five experts weigh in on the mixed quarter for the big banks so far.
Read more »
Stocks slip after lackluster earnings from Goldman Sachs and CitigroupStocks slipped slightly today following mixed quarterly numbers from Goldman Sachs and Citigroup. The Dow fell 0.11% and the S&P 500 fell 0.06%.
Read more »
A new era at Goldman Sachs starts in the shadow of a scandalCan the bank reinvent itself?
Read more »
Goldman Sachs to layoff 98 bank employees in New YorkGoldman Sachs Group Inc plans to lay off nearly 100 employees in New York in the...
Read more »
Here comes Goldman Sachs earnings...Goldman Sachs is scheduled to report first-quarter earnings on Monday.
Read more »