Goldman Sachs Asset Management (GSAM) has unveiled its first exchange-traded fund (ETF) that will track its proprietary ActiveBeta index.
Called the ActiveBeta US Large Cap Equity ETF, the new smart-beta ETF is a defined strategy with diversified exposure to stocks and low costs.
The ETF will be powered by GSAM’s ActiveBeta index, a performance-seeking methodology from Goldman Sachs that delivers the potential to outperform the market.
The fund will be managed by Steve Jeneste and Raj Garigipati. It will deliver investment results that closely correspond, before fees and expenses, to the performance of the ActiveBeta U.S. Large Cap Equity Index.
The new ETF is aimed at offering exposure to equity securities of large capitalization US issuers. The Fund is not actively managed and its performance may differ from the performance of the Index as a result of transaction costs, expenses and other factors.
Launched with $50m in institutional assets, the ETF will be priced competitively at a cost of 9 basis points to investors based on a universe of funds that include market cap-weighted ETFs and smart beta ETFs.
The firm is planning to roll out additional ActiveBeta ETFs in the coming months.
GSAM global co-head of the investment management division Tim O’Neill said: "Our approach to ETFs continues our legacy of investment innovation and at a cost that makes them accessible to all investors."
GSAM Global Head of ETF Strategies Michael Crinieri said: "We believe ActiveBeta ETFs create solutions for them and capitalize on our global reach and deep knowledge of the markets."