Goldman's opportunity

The emergence of bond exchange-traded funds (ETF) has given Goldman Sachs an opportunity to stake a claim for its family of fixed income indices. Everyone is surprised that Goldman Sachs's InvesTop index has been chosen for Barclays Global Investors' (BGI) new range of bond ETFs. Now Goldman is looking to make the most of the opportunity. The fixed income world has lagged behind in the development ETFs because of its complexity and opacity. The initial offering includes four funds. As well as maintaining the index, Goldman Sachs is a market maker in both the underlying bonds and the ETF itself. Whether the bank can now go on to consolidate its position however is another matter. The new development seems at odds with the bank's broader strategy.