Count Goldman Sachs (NYSE: GS) among the issuers of exchange traded funds mulling the launch of an ETF dedicated to environmental and socially responsible investing.
Goldman “said in a filing on Monday it would launch a new climate-focused index-tracking exchange-traded fund (ETF). Launch of the Goldman Sachs S&P 500 Environmental & Socially Responsible ETF comes on the heels of the recent landmark agreement on climate change at the global climate summit in Paris,” according to Reuters.
Goldman launched its first ETFs this year, but its three new funds are among this year’s most successful rookie ETFs. The Goldman Sachs ActiveBeta U.S. Large Cap Equity ETF (NYSEArca: GSLC) is Goldman’s first ETF.
GSLC’s underlying index will implement multi-factor strategies through its patented ActiveBeta Portfolio Construction Methodology that provides exposure to factors commonly tied to a stock’s outperformance relative to market returns.
Specifically, the factors include value or how attractively a stock is price relative to fundamentals like book value and free cash flow; momentum or the current up or down trend in a company stock; quality or profitability; and low volatility or the degree of fluctuation in a company’s share price over time.
Goldman’s other ETFs are the Goldman Sachs ActiveBeta Emerging Markets Equity ETF (NYSEArca: GEM) and the Goldman Sachs ActiveBeta International Equity ETF (NYSEArca: GSIE). GSIE is the newest of the trio, having debuted last month.
ETFs such as the SPDR MSCI ACWI Low Carbon Target ETF (NYSEArca: LOWC) and the iShares MSCI ACWI Low Carbon Target ETF (NYSEArca: CRBN) along with a spate of recently launched products offer investors exposure to environmentally responsible theme.
“The Goldman Sachs ETF will hold stocks in S&P 500 companies that are not heavily involved in the production of coal, oil, gas, tobacco and military armaments,” reports Reuters.