Source has launched a new exchange traded fund designed to outperform traditional market-cap benchmarks.
The Source Goldman Sachs Equity Factor Index World Ucits ETF adds to Source’s existing “beta plus” range of products.
The ETF offers exposure to global equities and includes 626 constituents from across 22 countries.
The ETF is available on the London Stock Exchange and carries an annual management fee of 0.65 per cent.
Source chief executive Ted Hood says: ““Investors are increasingly looking outside traditional market cap benchmarks for an enhanced return. Academic research recognises the importance of combining equity factors but before this listing there was no way of harnessing their combined ability to deliver outperformance using an ETF.”
Goldman Sachs EMEA equity structuring and marketing co-head Quentin Andre adds that diversification is “key” to driving outperformance.
“Individual factor returns sometimes diverge significantly from established benchmarks and can add significant risk to a portfolio. To achieve consistent outperformance, diversification is key. We have selected five factors – all well‐supported by academic research – and developed an index that delivers efficient, diversified exposure,” he says.