Goldman Sachs Asset Management (GSAM) has introduced two actively managed fixed income ETFs in Europe, offering exposure to high-quality corporate bonds denominated in US dollars and euros.
Hilary Lopez, Head of the EMEA Third Party Wealth Business at Goldman Sachs Asset Management.
The Goldman Sachs USD Investment Grade Corporate Bond Active UCITS ETF is listed on the London Stock Exchange in both US dollars (GIGU LN) and pound sterling (GIGP LN), as well as on Deutsche Börse Xetra in euros (GIGU GY).
The Goldman Sachs EUR Investment Grade Corporate Bond Active UCITS ETF (GIGE GY) is currently available only on Xetra in euros.
Each ETF comes with an expense ratio of 0.25%.
These launches mark GSAM’s first active ETFs in the EMEA market, following a significant expansion of its active ETF offering in the US during 2024.
GSAM highlights that an active approach in fixed income can help investors capture market inefficiencies, manage volatility, and mitigate company-specific risks through active credit selection.
Managed by GSAM’s Fixed Income and Liquidity Solutions team—which oversees more than $1.75 trillion in global assets with over 370 financial professionals—each ETF invests in investment-grade corporate bonds issued worldwide. GIGU focuses on USD-denominated bonds, while GIGE holds EUR-denominated bonds.
Up to 10% of each portfolio may be allocated to securities downgraded below investment grade and contingent convertible bonds (CoCos).
The investment strategy integrates fundamental, quantitative, and technical analysis to identify opportunities, leveraging sector rotation, security selection, currency exposure, and yield curve positioning to enhance returns.
ESG considerations are embedded within the process, excluding issuers linked to controversial weapons, certain fossil fuels, and tobacco, as well as companies violating UN Global Compact principles. Additionally, at least 70% of each portfolio must meet proprietary ESG criteria.
Hilary Lopez, Head of the EMEA Third Party Wealth Business at Goldman Sachs Asset Management, commented: “We believe the active ETF market is poised for continued growth, particularly in fixed income. Recent trends demonstrate strong demand for active strategies, with active fixed income ETFs seeing remarkable inflows globally. These new ETFs reflect our dedication to helping investors access the full potential of the fixed income market, with the added advantage of active management to optimize outcomes.”
Kay Haigh, Global co-Head of Fixed Income and Liquidity Solutions at Goldman Sachs Asset Management, added: “The fixed income landscape in 2025 offers compelling prospects, with yields at decade-high levels and a favourable macroeconomic backdrop driven by easing monetary policies. However, varying issuer and sector fundamentals present opportunities for active management. These strategies will leverage our existing credit investment capabilities to allow investors to capitalize on these opportunities while navigating risks.”