Goldman Sachs’ New ETF for Market Volatility Protection

Goldman Sachs Asset Management is stepping up its efforts to cater to investors seeking downside protection from market volatility. A standout initiative in this direction is the firm’s launch of its latest buffer exchange-traded fund (ETF): the Goldman Sachs U.S. Large Cap Buffer 3 ETF.

Driving Efforts Towards Expanding Investment Strategies

Chief Transformation Officer Bryon Lake, who joined Goldman Sachs in the summer last year, has been instrumental in spearheading these new offerings. Lake’s appointment was part of a strategic move to expand the firm’s investment strategies. Before joining Goldman Sachs, Lake led the global ETF business at JPMorgan Chase.

Function & Performance of Buffer ETFs

According to Lake, the buffer products are designed with the central aim of protecting investors from downside risks while providing opportunities for upward gains. “The buffer products are designed to protect from down 5% to 15% while still allowing for participation upwards of 5% to 7%. These settings reset on a quarterly basis,” explained Lake.

These buffer ETFs employ strategies that have been proven effective over time. “These are tried and true strategies that have served investors well for decades,” Lake stated.

Since it began trading on March 4, the Goldman Sachs U.S. Large Cap Buffer 3 ETF has fallen by approximately 3%. During the same period, the S&P 500 has dipped nearly 4%.

Find out more about the latest trends in ETFs here.

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