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Mark Kennedy

New Momentum Builder ETFs from ALPS

By December 28, 2012

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ALPS has launched a new momentum-builder series of ETFs in conjunction with Goldman Sachs...

  • GSAX - ALPS-GS Momentum Builder Asia ex-Japan Equities and U.S. Treasuries Index ETF
  • GSGO - ALPS-GS Momentum Builder Growth Markets Equities and U.S. Treasuries Index ETF
  • GSMA - ALPS-GS Momentum Builder Multi-Asset Index ETF

According to ALPS, the goal of the funds is to implement momentum-driven strategies designed to capture the market trends of select asset classes. Each ETF is designed to provide exposure to price momentum equity and U.S. fixed income markets by reflecting the combination of underlying ETF weightings that provide the highest six-month historical return, subject to the constraints on maximum and minimum weights and volatility controls.

Unlike traditional momentum strategies which are typically based solely on historical returns, the Momentum Builder Index ETFs also take into account historical volatilities and correlation to manage the risk of the overall portfolio.

Each of the funds will correlate with these three indexes respectively...

  • GS Momentum Builder Asia ex-JapanEquities and U.S. Treasuries Index
  • GS Momentum Builder Growth MarketsEquities and U.S. Treasuries Index
  • GS Momentum Builder Multi-Asset Index

You can get full details on how the new funds work and their holdings on the fact sheet for the three new ETFs (opens a PDF). But wait, there's more...

  • GSRA - ALPS-GS Risk-Adjusted Return US Large-Cap Index ETF

The goal of this ETF is to reflect the performance of an index of U.S. stocks anticipated to have the highest risk-adjusted returns using 12 month price targets for the stocks in the Russell 1000 Index. Full details for this fund can also be found on the fact sheet (opens a pdf) on the ALPS website.

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