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September 27, 2019

Goldman Sachs enters European ETF market

The asset management business of Goldman Sachs has forayed into European exchange traded (ETF) fund market by listing its first ETF on the London Stock Exchange.

The Goldman Sachs ActiveBeta US Large Cap Equity ETF is the European version of the company’s flagship ETF in the US, which has assets under management of more than $6.5bn.

Launched in September 2015, the ETF is said to be the largest multi-factor equity ETF in the world. It is designed to offer investors a better risk/return profile over a whole investment cycle compared to traditional market-cap weighted indices.

Goldman Sachs Asset Management (GSAM) is expected to list up to 10 ETFs in London over the next six months.

It plans to introduce a wide array of ETFs that will offer access to a number of markets, asset classes and investment styles.

The asset manager added that it intends to list the new ETF on several other exchanges across Europe in the coming months.

GSAM head of the international retail client business Nick Phillips 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.

“The funds will be relevant to both retail and institutional clients. This is a significant addition to our international product offering and we are tremendously excited to enter the fast-growing European ETF market.”

GSAM head of European ETF business Peter Thompson said: “GSAM ETFs will be smart, simple and accessible. The suite of products we plan to launch in the coming months will enable our clients to build diversified global portfolios using a mix of active and passive investment styles.

“We are focused on building this business for the long-term and believe we can provide superior choice and performance to our clients through this product range.”

The asset manager, which started offering ETFs in the US in 2015, currently has 19 ETFs in the US, with over $14bn in assets.

In August this year, GSAM acquired a passive, non-voting minority equity stake in Canada’s Slate Asset Management.

The investment was made through GSAM’s Petershill programme, which focuses on offering financial assistance to mid-sized asset managers.

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