In this article published in ETF Strategy, Andrew Beer explores Goldman’s motivation for launching a replication-based ETF and examines the shifting liquid alternatives space.
So why is Goldman now launching a replication-based ETF? Most obviously, replication has performed far better than almost any other category of liquid alternatives. In fact, while most liquid alts underperform illiquid hedge funds by 200 bps per annum, replication strategies have delivered approximately 100 bps more of alpha on average than actual hedge funds.
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