Goldman Sachs Asset Management (GSAM) has rolled out its three inaugural European-domiciled ETFs on Borsa Italiana‘s ETFplus platform.
GSAM has cross-listed its three inaugural European domiciled ETFs onto Borsa Italiana.
The Wall Street giant debuted the ETFs on London Stock Exchange and subsequently cross-listed them onto Xetra and SIX Swiss Exchange.
Two of the ETFs provide access to equity portfolios – US large-caps and emerging market companies – that have been weighted according to a multi-factor process.
The third provides broad market exposure to Chinese government bonds.
The listings trade in euros.
Commenting on the launch, Loredana La Pace, Country Head, Italy, GSAM, said, “Our clients around the world are demanding greater diversification within their portfolios and we are pleased to have completed our current range of ETFs, as we believe that they can simplify portfolio construction and help to achieve higher risk-adjusted returns.
“These investment tools, which are important for both retail and institutional clients, represent a significant addition to our international product range. We are very excited to be entering the Italian ETF market.”
Pietro Poletto, Global Head of Fixed Income Products and Co-Head of Equity, Funds & Fixed Income, Secondary Markets, Borsa Italiana, added, “We are pleased to welcome GSAM, which, with the listing of three new ETFs, becomes the twenty-first issuer on the Borsa Italiana’s ETFplus market. GSAM, a leading asset management company, joins the European ETF scene, bringing with it its deep knowledge and experience in fund management.
“The arrival of GSAM in Italy confirms the centrality and continuous growth of ETFplus in the international economic context, with platform AUM recently reaching a new record of €83.50 billion.”
The funds
The Goldman Sachs ActiveBeta US Large Cap Equity UCITS ETF (GSLC IM) tracks the Goldman Sachs ActiveBeta US Large Cap Equity Index which systematically exploits four well-established equity factors – value, momentum, quality and low volatility – in a bid to provide higher returns at similar or lower levels of risk relative to traditional market-cap weighted benchmarks.
The index is built from a universe of constituents that corresponds to the Solactive US Large Cap Index (excluding the stock of Goldman Sachs) which comprises the 500 largest companies in the US based on free-float market capitalization.
The construction process involves two steps. In the first step, four sub-indices are determined, one for each factor, by assigning eligible constituents a score for each of the four factors based on financial and technical attributes. Constituents are over- or under-weighted in these four single-factor sub-indices according to factor rank.
In the second step, the four sub-indices are equally weighted with offsetting positions calculated and netted off to determine the final index weights, subject to various weight constraints to control industry group biases. The index is rebalanced quarterly but constituents are allowed to deviate either side of their target weights within a range to reduce portfolio turnover.
The fund comes with an expense ratio of 0.14%.
The Goldman Sachs ActiveBeta Emerging Markets Equity UCITS ETF (GSEM IM) tracks the Goldman Sachs ActiveBeta Emerging Markets Equity Index which follows the same methodology as above but is built from a universe of constituents that corresponds to the MSCI Emerging Markets Index – a representation of large and mid-cap stocks across 26 emerging market countries.
The fund comes with an expense ratio of 0.49%.
The Goldman Sachs Access China Government Bond UCITS ETF (CBND IM) tracks the FTSE Goldman Sachs China Government Bond Index which measures the performance of renminbi-denominated fixed-rate bonds issued by the Chinese treasury and regional Chinese governments.
Eligible bonds must have a minimum issue size of at least CNY 20 billion and at least one year remaining until maturity. The index is weighted by market capitalization and rebalanced monthly.
The fund comes with an expense ratio of 0.35%.