The secret ETF that tracks hedge funds $GVIP
Most investors would love to know what the big hedge funds are really buying — and here's a smart way to do it.
The Goldman Sachs Hedge Industry VIP ETF ($GVIP) is an ETF that provides access to the "most loved" stocks among leading US hedge funds.
How does it work?
Goldman Sachs analyzes the quarterly reports that hedge funds submit to the SEC (13F filings), identifying which stocks repeatedly appear in their portfolios.
The fund builds a unique index – the Hedge Fund VIP Index – composed of the stocks that appear most frequently in the investment portfolios of these funds.
To be included in the index, funds must: 1. Manage over $100 million in US stocks 2. And hold between 10 and 200 different positions.
The result?
The $GVIP ETF provides exposure to the collective wisdom of the world's sharpest investment managers – without paying hedge fund management fees, and without strict investment limitations.
An elegant way to track smart money...
While not a substitute for independent thinking, it's a tool that offers a fascinating glimpse behind the scenes on Wall Street.