Goldman Sachs Asset Management (GSAM) has launched its European ETFs business. The starting product is the Goldman Sachs ActiveBeta US Pat. Large Cap Equity ETF.
This reissued fund is the European counterpart to Goldman's US flagship ETF, the world's largest multi-factor equity ETF with over $6.5bn in assets under management. The Goldman Sachs ActiveBeta US Large Cap Equity ETF is listed on the London Stock Exchange today and will be listed on other European exchanges shortly. It is designed to provide a better return-risk profile over an investment cycle than traditional, market-only weighted indices.
Over the next six months, GSAM plans to launch additional ETFs that will provide access to multiple markets, asset classes and investment styles. GSAM has developed many of these investment strategies internally with expertise and years of experience. The ETFs specifically complement the active fund offering of GSAM. They can be combined or used as part of a broader, diversified portfolio, for example, to optimise existing investment strategies.
Nick Phillips, head of the International Retail Client Business at GSAM, said: "Our global clients are demanding more choice in their portfolios and we are excited to complement our existing fund range with ETFs that we believe can help simplify portfolio construction and contribute to superior risk-adjusted returns. The funds will be relevant to both retail and institutional clients. This is a significant addition to our international product offering and we are tremendously excited to enter the fast-growing European ETF market."
Peter Thompson, head of GSAM's European ETF business, added: "Our ETFs will be innovative and easily accessible. The product line that we are launching in the coming months will allow our clients to create diversified global portfolios in a mix of passive and active investment strategies. We are focused on building this business for the long term, and we believe we can offer our customers a superior and powerful choice with this range of products. "
GSAM has been offering ETFs in the US since September 2015. The deal now includes 19 ETFs with assets under management of over $14bn.