Solactive released the Solactive US Large Cap Equal Weight index, an equally-weighted benchmark mimicking the performance of the 500 largest US companies, which will be tracked by the Goldman Sachs Equal Weight U.S. Large Cap Equity ETF. The index can appeal to investors interested in gaining diversified exposure to the largest and most liquid segments of the U.S. equity market through an equal weighting scheme.
Steffen Scheuble, CEO of Solactive AG commented: “Building on the market-cap- weighted Solactive US Large Cap index (GTR), the Solactive US Large Cap Equal Weight index provides an equal weight version of that benchmark and an innovative solution to help investors potentially avoid excessive concentration into larger U.S. companies. We’re excited to once again serve as an index provider to GSAM ETF through the creation of such a timely and unique index.”
Tony Kelly, head of Product Development for Goldman Sachs’ ETF Business added: “We launched GSEW, which seeks to track Solactive’s US Large Cap Equal Weight index, to provide investors with balanced access to large cap equities that may efficiently capture movements in the U.S. economy. With Solactive, we are able to help investors avoid excessive concentration in larger U.S. companies through systematic monthly rebalancing.”
With this launch, Solactive is expanding its range of country-wide benchmarks relying on an equal-weighting system, which at the moment cover France, Germany and Switzerland. The index can provide an alternative indicator of the performance of the U.S. equity market to the market-cap-weighted version. In addition, aside from constituting the underlying index for ETFs, the Solactive US Large Cap Equal Weight index can also be used as a starting universe for smart beta strategies.
The Solactive US Large Cap Equal Weight index is calculated as a price return and gross total return index denominated in USD. It is composed of 500 US stocks with the highest float adjusted market capitalization. The index is readjusted semi-annually and equally weighted on a monthly basis.