Investment Products and Services Launches

Goldman Sachs Launches High Yield Corporate Bond ETF; Sage Advisory Introduces Custom Laddered Strategy; and Franklin Templeton Rolls Out Active Municipal Bond ETFs.

By Javier Simon | September 07, 2017
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Goldman Sachs Launches High Yield Corporate Bond ETF

Goldman Sachs Asset Management (GSAM) has updated its Access suite of exchange-traded funds (ETFs) with the addition of the Goldman Sachs Access High Yield Corporate Bond ETF (GHYB).

The fund seeks to track the Citi Goldman Sachs High Yield Corporate Bond Index, which measures the performance of high yield corporate bonds denominated in U.S. dollars that meet certain liquidity and fundamental screening criteria. It uses a rules-based methodology that aims to exclude bonds with the greatest potential to default or deteriorate in price. It is priced to investors at 34 basis points and will begin trading on the NYSE Arca on September 7 with $50 million in assets.

The Index is owned and calculated by FTSE Fixed Income LLC using concepts developed with GSAM.

“High yield corporate bonds are a natural choice for investors seeking ways to generate yield in their portfolios,” says Jason Singer, portfolio manager for GHYB. “GHYB aims to address concerns surrounding high yield bonds, particularly that they can be less liquid and more prone to default, when compared to other sectors. GHYB seeks to offer a more thoughtful way to access the high yield market in a low-cost, transparent ETF wrapper.”

The GHYB will be passively managed by GSAM’s Global Fixed Income team. The fund is the second ETF in GSAM’s Access ETF line-up, following Goldman’s Access Investment Grade Corporate Bond ETF.

NEXT: Sage Advisory Introduces Custom Laddered Strategy