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Source and Goldman sachs expand range of innovative equity factor etfs

Source, an investment firm and a leading provider of Exchange TradedProducts (ETPs), is pleased to announce the launch of the Source Goldman Sachs Equity Factor Index Europe UCITS ETF….


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Michael John Lytle, Chief Development Officer at Source


 This is the second Source ETF to be launched that provides access to Goldman Sachs’ innovative series of multi-factor indices, following the success of the Source Goldman Sachs Equity Factor Index World UCITS ETF, which has attracted assets of approximately $400 million since its launch in 2014 and outperformed theMSCI World Net TR Index by 2.4%, after fees, to the end of the year.

The Goldman Sachs Equity Factor Index Europe Net TR offers broad long-only European equity exposure, emphasising five well-known equity market factors:  size, value, momentum, quality and low beta. It aims to deliver consistent outperformance versus European market cap benchmarks, on an absolute and risk-adjusted basis.

“Smart beta funds have proven successful in certain markets, providing investors with the potential to generate better returns than the more common market-cap weighted benchmarks, particularly on a risk-adjusted basis,” says Michael John Lytle, Chief Development Officer at Source. “The Goldman Sachs series of factor-based indices are unique in that they offer exposure to multiple factors, rather than just the one or two that are applied to many other funds on the market.”

“Building on from the success of our EFI World index in 2014, we are expanding our family of multi-factor indices to offer regional exposures, starting with Europe.” Says Jerome Brochard of Goldman Sachs.  “Over the last year, we have continued to see increased appetite from investors searching for enhanced equity returns, and this ETF launch offers them regional access to our innovative ‘smart beta’ approach in a liquid and transparent wrapper.  Investors have appreciated our careful portfolio construction around the five equity factors that we implemented in our global product, and we are using the same proven methodology here.” 

As of 31 December 2014, the Goldman Sachs Equity Factor Index Europe Net TR comprised 231 constituents from 15 countries. Country and sector risk versus market capitalisation-weightedbenchmarks are strictly controlled.  The index is reviewed monthly and calculated independently by Russell Investment Group.

Product Summary

Product name Source Goldman Sachs Equity Factor Index Europe UCITS ETF
Benchmark Goldman Sachs Equity Factor Index Europe Net TR
Listing London Stock Exchange Xetra
ISIN IE00BMW3NY56 DE000A1161M1
Base / Trading currency EUR/GBP EUR/EUR
Bloomberg (ticker) EFIE LN SMLU GY
Bloomberg (iNAV) EFIEIN SMLUIN
Reuters (ticker) EFEI.L SMLU.DE
Management fee 0.55% per annum
Domicile Ireland

Source: ETFWorld.co.uk


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