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Goldman Sachs introduces 'buffer ETFs' with competitive fees

EditorRachael Rajan
Published 10/27/2023, 03:04 AM
© Reuters.
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Goldman Sachs Asset Management (GSAM) has launched two enhanced income products, the Goldman Sachs S&P 500 Core Premium Income and the Goldman Sachs Nasdaq 100 Core Premium Income ETF, commonly referred to as 'buffer ETFs'. The announcement was made by Michael Crinieri, GSAM's global head of ETFs, who outlined their options overlay strategy that sells a portion of the portfolio's upside exposure to mitigate market risks and enhance yield. This strategy's application varies between 25% and 75%, dependent on market conditions.

Monali Vora, who heads GSAM's wealth investment solutions and has been developing such products since 2005, confirmed that these funds offer the consistent and predictable income clients seek. Notably, GSAM charges a competitive fee of 0.29% for these funds, undercutting the typical fee for defined outcome ETFs which usually ranges from 0.75% to 0.85%.

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