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Goldman Sachs and Betterment Launch Tax-Smart Bonds Portfolio for Savvy Investors: Details

BY Benzinga | CORPORATE | 07/18/24 01:30 PM EDT

The Goldman Sachs Group, Inc. (GS) shares are trading lower today. Goldman Sachs Asset Management and Betterment jointly introduced the Goldman Sachs (GS) Tax-Smart Bonds portfolio.

Goldman Sachs (GS) has developed a strategy by combining short-duration U.S. Treasury bonds, high-quality corporate bonds, and municipal bond ETFs.

Read: Goldman Sachs Targets Asia’s Fast-Growing Economies With New $2B Private Equity Fund: Report

This portfolio leverages Goldman Sachs’ expertise in bond markets and Betterment’s automation. 

The Goldman Sachs Tax-Smart Bonds portfolio is tailored for clients in higher tax brackets seeking a lower-risk bond strategy compared to equities.

This approach adapts to both longer-term trends and current market conditions, ensuring flexibility to respond to events such as the COVID-19 pandemic and U.S. debt ceiling debates, which can impact market stability.

Padideh Raphael, Global Head of Third Party Wealth at Goldman Sachs Asset Management, said, “It is important for investors seeking to create and safeguard long-term wealth to consider after-tax returns in their portfolios.” 

“This latest collaboration, combining Goldman Sachs’s investment capabilities with Betterment’s innovative technology platform and customer-first approach, will allow us to work together on behalf of clients who seek attractive after-tax bond yields.”

This week, the bank reported second-quarter revenue of $12.730 billion, beating the consensus of $12.456 billion and EPS of $8.62, beating the consensus of $8.35.

Related: Goldman Sachs Analysts Boost Their Forecasts Following Better-Than-Expected Earnings

Investors can gain exposure to the stock via IShares U.S. Broker-Dealers & Securities Exchanges ETF and Invesco KBW Bank ETF (KBWB) .

Price Action: GS shares are down 2.30% at $490.63 at the last check Thursday.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

Photo via Shutterstock

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In general the bond market is volatile, and fixed income securities carry interest rate risk. (As interest rates rise, bond prices usually fall, and vice versa. This effect is usually more pronounced for longer-term securities.) Fixed income securities also carry inflation risk and credit and default risks for both issuers and counterparties. Unlike individual bonds, most bond funds do not have a maturity date, so avoiding losses caused by price volatility by holding them until maturity is not possible.

Lower-quality debt securities generally offer higher yields, but also involve greater risk of default or price changes due to potential changes in the credit quality of the issuer. Any fixed income security sold or redeemed prior to maturity may be subject to loss.

Before investing, consider the funds' investment objectives, risks, charges, and expenses. Contact Fidelity for a prospectus or, if available, a summary prospectus containing this information. Read it carefully.

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