Today, Goldman Sachs launched a new domestic equity exchange traded fund that promises to be the least expensive smart-beta offerings on the market today.

“This smart-beta ETF will be priced like traditional beta products,”  said Michael Crinieri, Managing Director at Goldman Sachs.

Goldman Sachs ActiveBeta U.S. Large Cap Equity ETF (NYSEArca: GSLC), will have a 0.09% expense ratio, equal to the SPDR S&P 500 ETF (NYSEArca: SPY). The low expense ratio is quite surprising as most smart-beta index-based ETFs carry greater fees due to their customized nature.

There are 372 U.S.-listed equity ETFs that track non-market-capitalization-weighted indices, with an average expense ratio of 0.56%, according to XTF data. Enhanced large-cap ETFs have an average 0.49% expense ratio and enhanced small-cap/micro-cap ETFs have an average 0.55% expense ratio.

Goldman Sachs is crafting new ETFs in response to increased demand from clients for Goldman investment strategies in ETF form; especially among its institutional and insurance-based clients.

“Our clients are asking ‘Do you have this in an ETF wrapper?,’” said Steve Sachs, Head of Capital Markets at Goldman Sachs

Subscribe to our free daily newsletters!
Please enter your email address to subscribe to ETF Trends' newsletters featuring latest news and educational events.