NEW YORK, NY September 21, 2015 – Goldman Sachs Asset Management (“GSAM”) today announced the launch of its first exchange-traded fund (“ETF”), the ActiveBeta® US Large Cap Equity ETF (Ticker: GSLC).The fund is the first in a series of ETFs that will track GSAM’s proprietary ActiveBeta® index.
"We are excited to enter the ETF market," said Tim O'Neill, Global Co-Head of the Investment Management Division, which includes GSAM. "Our approach to ETFs continues our legacy of investment innovation and at a cost that makes them accessible to all investors."
The ActiveBeta® US Large Cap Equity ETF (GSLC) shares many of the same benefits of traditional ETFs—a defined strategy, diversified exposure to stocks and low costs—but it is powered by the Goldman Sachs ActiveBeta® index, a performance-seeking methodology from Goldman Sachs that delivers the potential to outperform the market.
"Our clients asked us to apply our investment expertise to exchange-traded funds," said Michael Crinieri, GSAM's Global Head of ETF Strategies. “We believe ActiveBeta® ETFs create solutions for them and capitalize on our global reach and deep knowledge of the markets.”
The ActiveBeta® index weights stocks based on four well-established attributes of performance:
1. Good value — The index identifies stocks from companies that may be undervalued by the rest of the market. This can help investors to gain exposure to high potential stocks that others may have overlooked.
2. Strong momentum — The index identifies stocks with prices that have been growing. This allows investors to participate in market trends.
3. High quality — The index identifies stocks from companies that demonstrate sustainable profitability over time. This allows investors to gain exposure to companies with strong fundamentals and potential for consistent returns.
4. Low volatility — The index identifies stocks from companies that are likely to avoid extreme swings up and down in price. This aims to smooth out the ride, so investors can stay invested for the long term.
The ActiveBeta® US Large Cap Equity ETF (Ticker: GSLC) launched today, with $50 million in institutional assets. The fund is priced competitively at a cost of 9 basis points to investors.
The firm plans to launch additional ActiveBeta® ETFs in the coming months.
