Goldman Sachs Asset Management (GSAM) has launched its first exchange-traded fund (ETF) in Europe.
Listed on the London Stock Exchange, the product aims to achieve better risk/return over a whole investment cycle relative to traditional market-cap weighted indices, the firm said.
The Goldman Sachs ActiveBeta U.S. Large Cap Equity Ucits ETF is the European version of Goldman’s flagship ETF in the US market which has over $6.5 billion (€5.9 billion) in assets under management (AuM). The firm claims it is the largest multi-factor equity ETF in the world at present.
Over the next six months, the fund manager is planning on launching a range of ETFs providing access to various markets, asset classes, and investment styles.
According to GSAM, many of these strategies have been developed in-house. They are designed to be complementary to the US company’s active fund range.
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.”
He called the launch a “significant addition” to GSAM’s international product range, and relevant to both retail and institutional clients.
BNY Mellon has been selected to provide asset services for GSAM’s European ETF range.
GSAM began offering ETFs in the US in 2015, and now has 19 ETFs there with over $14 billion in AuM.
According to a recent report by JP Morgan Asset Management, global allocations to ETFs are set to increase significantly over the next few years.
ETFs made up just over a fifth of client portfolios worldwide as recently as 2016. This figure is set to increase to 39% by 2022, the study found.
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