Goldman Launches New Strategic Beta ETF

New York-based Goldman Sachs Asset Management has launched an ETF aimed at providing exposure to investment opportunities in developed equity markets outside of the U.S.

The Goldman Sachs ActiveBeta International Equity ETF (GSIE) will seek to track the Goldman Sachs ActiveBeta International Equity Index.

The index is constructed using a proprietary performance-seeking methodology that weights stocks in the MSCI World ex USA Index on value, momentum, quality and low volatility.

“[This] ETF leverages our broad global expertise to deliver access to slices of international markets in a sophisticated and cost-effective way,” said Michael Crinieri, GSAM’s global head of ETF strategies. “With the addition of GSIE to our ActiveBeta lineup, investors are even further equipped to capitalize on investment opportunities stemming from structural adjustments abroad and manage risk brought on by increasingly volatile markets.”

The fund is priced at 35 basis points, 13% lower than the index fund average in the category.

In September, Goldman Sachs launched two other Active
Beta products: a U.S. Large Cap Equity ETF and an Emerging Markets Equity ETF. In the first two months after their launch, the new products grew to $105 million and $181 million in assets, respectively.

“The launch of our third ActiveBeta product underscores our commitment to not only meet but to anticipate the needs of investors by offering what we consider to be the next generation of ETF investing,” said Gary Chropuvka, Goldman’s head of customized beta strategies.


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