NEW YORK, NY September 29, 2015 – Goldman Sachs Asset Management (“GSAM”) today announced the launch of its second exchange-traded fund ("ETF"), the Goldman Sachs ActiveBeta® Emerging Markets Equity ETF (Ticker: GEM). The Fund is the first in the firm's series of ActiveBeta® ETFs to invest outside the United States and will track GSAM's proprietary Goldman Sachs ActiveBeta® Emerging Markets Equity Index.
"We see growth opportunities across various sectors in emerging markets, and the Goldman Sachs ActiveBeta® Emerging Markets Equity ETF is designed to capture returns from these pockets of growth," said Michael Crinieri, GSAM's Global Head of ETF Strategies. "As investors continue to look for new ways to increase their exposure to international equities, we are pleased to bring to market a product that provides them that access and diversification in their portfolios at a reasonable cost."
The Goldman Sachs ActiveBeta® Emerging Markets Equity ETF launched today, with $20 million in assets. The fund is priced competitively at a cost of 45 basis points to investors. The cost of the Goldman Sachs ActiveBeta® Emerging Markets Equity ETF is 34 percent lower than the most liquid Emerging Market Equity ETF by volume, and more than 22 percent lower than the Morningstar Diversified Emerging Markets category Strategic Beta average.
The Goldman Sachs ActiveBeta® Emerging Markets Equity ETF is similar to the Goldman Sachs ActiveBeta® U.S. Large Cap Equity ETF (GSLC), which started trading on September 21, 2015, in that it seeks to track a Goldman Sachs ActiveBeta® index. The index is constructed using a performance-seeking methodology from Goldman Sachs that delivers the potential to outperform the market.
The Goldman Sachs ActiveBeta® Emerging Markets Equity Index weights stocks in the MSCI Emerging Markets Index — which as of July 31, 2015, consisted of 836 securities from issuers in 23 emerging market countries — on four well-established attributes of performance:
1. 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. Momentum — The index identifies stocks with prices that have been growing. This allows investors to participate in market trends.
3. 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 percentage of the Goldman Sachs ActiveBeta® Emerging Markets Equity Index exposed to any asset class, country or geographic region will vary over time, and the Goldman Sachs ActiveBeta® Emerging Markets Equity ETF may not be invested in each asset class, country or geographic region at all times.
“We believe the launch and continued evolution of our ActiveBeta® ETF suite is indicative of what we believe is part of the next generation of investing,” said Gary Chropuvka, Head of ActiveBeta® Equity Strategies within the Quantitative Investment Strategies team. “GEM is a result of our commitment to serving all investors – leveraging our quantitative investment expertise, applying it to our deep knowledge of global markets and delivering the strategy in a sophisticated yet simple structure.”
The firm plans to launch additional ActiveBeta® ETFs in the coming months.
GSAM is the asset management arm of The Goldman Sachs Group, Inc. (NYSE: GS), which supervises $1.02 trillion in assets as of June 30, 20151. Goldman Sachs Asset Management has been providing discretionary investment advisory services since 1988 and has investment professionals in all major financial centers around the world. The company offers investment strategies across a broad range of asset classes to institutional and individual clients globally. Founded in 1869, Goldman Sachs is a leading global investment banking, securities and investment management firm that provides a wide range of financial services to a substantial and diversified client base that includes corporations, financial institutions, governments and high-net-worth individuals.
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