GSAM Expands ETF Suite with the ActiveBeta® U.S. Small Cap Equity ETF (Ticker: GSSC)
NEW YORK, June 29, 2017 – GSAM today announced the launch of GSSC, the sixth product in its ActiveBeta® suite of exchange traded funds (“ETFs”). The fund seeks to provide low-cost access to small capitalization U.S. equities by tracking GSAM’s proprietary Goldman Sachs ActiveBeta® U.S. Small Cap Equity Index (the “Index”).
“Over the last two years, we have focused on building a suite of innovative, low-cost ETFs that allow investors to access key markets while harnessing the time-tested benefits of a factor-diversified approach,” said Michael Crinieri, GSAM’s Global Head of ETF Strategy. “After applying our ActiveBeta® approach to large cap equities in the U.S. as well as in Emerging Markets, Developed International Equities, Europe and Japan, we are thrilled to now apply it to a market as dynamic and diverse as U.S. small cap equities.”
GSSC is priced to investors at 20 basis points and will begin trading on the NYSE Arca on June 29 with $8 million in assets. GSSC will be passively managed by GSAM’s Quantitative Investment Strategies team.
“GSSC is a result of continued investor demand for products that offer a multi-factor investment approach, providing exposure to small cap equities by leveraging our quantitative investment expertise,” said Gary Chropuvka, Head of Customized Beta Strategies within the Quantitative Investment Strategies team.
The Index seeks to overweight and underweight certain securities according to four well-established attributes of performance while remaining broadly in-line with traditional market-cap weighted U.S. small cap indices:
- Value: The index identifies stocks from companies that may be undervalued by the rest of the market. This can help investors gain exposure to high potential stocks others may have overlooked.
- Momentum: The index identifies stocks that have recently performed well and may exhibit some persistence in their outperformance. This allows investors to participate in market trends.
- Quality: The index identifies stocks from companies that have efficiently generated profits over time. This allows investors to gain exposure to companies with strong fundamentals and the potential for consistent returns.
- Low Volatility: The index identifies stocks from companies that are likely to avoid extreme swings up and down in price.
GSAM ETF Background
- GSAM started offering ETFs in September 2015 with the launch of the Goldman Sachs ActiveBeta® U.S. Large Cap Equity ETF (Ticker: GSLC). It now has 9 ETFs with $4.4 billion in assets under management as of June 20, 2017.
- GSAM most recently launched the Goldman Sachs Access Investment Grade Corporate Bond ETF (Ticker: GIGB) in June 2017.
- In February 2017, GSAM earned the ETF Achievement Award by Fund Action1. GSAM was named the Most Innovative Issuer by ETF.com and GSLC was recognized as the Best New US Equity ETF and the Best New Smart Beta/Factor ETF in 20162.
GSAM’s current ETF line-up is outlined below:
NAME |
TICKER |
INCEPTION DATE |
TOTAL EXPENSE RATIO |
Goldman Sachs ActiveBeta® U.S. Large Cap Equity ETF |
GSLC |
9/17/15 |
9 |
Goldman Sachs ActiveBeta® Emerging Markets Equity ETF |
GEM |
9/25/15 |
61 (gross) |
Goldman Sachs ActiveBeta® International Equity ETF |
GSIE |
11/6/15 |
25 |
Goldman Sachs ActiveBeta® Europe Equity ETF |
GSEU |
3/2/16 |
25 |
Goldman Sachs ActiveBeta® Japan Equity ETF |
GSJY |
3/2/16 |
25 |
Goldman Sachs ActiveBeta® U.S. Small Cap Equity ETF |
GSSC |
6/28/17 |
20 |
Goldman Sachs Hedge Industry VIP ETF |
GVIP |
11/1/16 |
45 |
Goldman Sachs Access Investment Grade Corporate Bond ETF |
GIGB |
6/6/17 |
14 |
Goldman Sachs TreasuryAccess 0-1 Year ETF |
GBIL |
9/6/16 |
14 |
