U.S. equities are highly elevated relative to their counterparts across the globe and as investors have demanded more products that help to generate alpha and provide risk parity ETF issuers have obliged. Yesterday Goldman Sachs Asset Management (GSAM) entered the ex-US fray by launching their 3rd of 6 new smart-beta ETFs, branded ActiveBeta, the Goldman Sachs ActiveBeta International Equity ETF (NYSEarca: GSIE).
GSIE is trading on NYSE arca and has a 0.35% expense ratio.
GSAM launched their first ETFs in September – Goldman Sachs ActiveBeta U.S. Large Cap Equity ETF (NYSEarca: GSLC) and Goldman Sachs ActiveBeta Emerging Markets Equity ETF (NYSEarca: GEM) – and have quickly amassed over $100m and $150m respectively.
The ETF will track a proprietary index called the Goldman Sachs ActiveBeta International Equity Index, which is constructed using performance-seeking methodology from Goldman. It weights stocks in the MSCI World ex USA Index on the well-established attributes of value, momentum, quality, and low volatility. The aims of these attributes are to identify stocks with high potential, growth, consistency, and stability so “investors can stay invested for the long term” according to the press release.