Source offers Equity Factor ETF on Xetra

London, 30 May 2014: Source is pleased to announce that its flagship Source Goldman Sachs Equity Factor Index World UCITS ETF can now be traded in EUR on Xetra.  The fund, launched in January 2014 on the London Stock Exchange, has already reached US$ 270 million. It offers exposure to an innovative index, developed by Goldman Sachs and designed to outperform traditional market capitalisation-weighted benchmarks.

The Goldman Sachs Equity Factor Index World Net TR offers broad global equity exposure emphasising five well-known market factors:  size, value, momentum, quality and low beta. It aims to deliver consistent outperformance versus market cap benchmarks, on an absolute and risk-adjusted basis. As of 31 March 3014, the index has 586 constituents from 22 countries.

“Factor investing is nothing new,” says Quentin Andre, co-Head of Equity Structuring and Marketing for EMEA at Goldman Sachs. “However, individual factor returns sometimes diverge significantly from established benchmarks and can add significant risk to a portfolio. To achieve consistent outperformance, you need to diversify and you need to control country and sector risk.” Over the past five years, the Goldman Sachs Equity Factor Index World Net TR has outperformed MSCI World by an average 2.7% per annum, with lower volatility¹.