Goldman Cuts Smart-Beta Fees to a New Level
- New equal-weighted ETF will charge just 9 basis-point fee
- Cost has become key differentiator for funds chasing flows
Smart-Beta Could Loosen Active’s Hold on Fixed Income
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Goldman Sachs Group Inc. isn’t known for its largesse, but when it comes to exchange-traded funds the Wall Street giant is almost giving handouts to its customers.
The firm’s asset management arm is now offering some of the cheapest smart-beta funds, including a new one that will charge just 9 basis points for a portfolio with exposure to a basket of large-cap stocks that all have the same allocation, a regulatory filing on Monday shows. That’s less expensive than any other comparable equal-weighted fund, as well as the world’s largest and most traded ETF -- State Street Corp.’s S&P 500 ETF Trust, better known by the ticker SPY.