ETF Trends
ETF Trends
  • Free webcast on Wednesday, March 2 at 2pm EST to discuss market outlook, potential opportunities multi-factor ETFs may present 
  • Goldman Sachs recently launched a group of “ActiveBeta” ETFs that track multi-factor indices
  • ActiveBeta ETFs have some of the lowest fees among smart beta ETF options

The shifting market environment suggests exchange traded fund investors should take a more disciplined approach to portfolio construction.

On the upcoming free webcast (2pm EST on March 2), Goldman Sachs Asset Management Market View With ActiveBeta ETFs, Candice Tse, Vice President of Strategic Advisory Solutions at Goldman Sachs Asset Management, Andrew Alford, Managing Director of Quantitative Investment Strategies at Goldman Sachs Asset Management, and Mark Eicker, Chief Investment Officer and Portfolio Manager at Sterling Global Strategies, discuss their market outlook and the potential opportunities that multi-factor ETFs may present investors ahead.

For instance, Goldman Sachs recently launched a group of “ActiveBeta” ETFs that track multi-factor indices, including the Goldman Sachs ActiveBeta International Equity ETF (NYSEarca: GSIE), Goldman Sachs ActiveBeta U.S. Large Cap Equity ETF (NYSEarca: GSLC) and Goldman Sachs ActiveBeta Emerging Markets Equity ETF (NYSEarca: GEM).

The Goldman Sachs ETFs’ underlying indices 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 Sachs crafted the ETFs in response to increased demand from clients for Goldman investment strategies in an ETF wrapper, especially among its institutional and insurance-based clients. The ActiveBeta ETFs quickly garnered traction among large institutional investors. GSIE has $79.5 million in assets under management, GSLC attracted $350.6 million in assets and GEM has accumulated $554.5 million.

Moreover, the ActiveBeta ETFs have some of the lowest fees among smart beta ETF options. GEM has a 0.45% expense ratio, GSIE has a 0.35% expense ratio and GSLC has a 0.09% expense ratio.

Financial advisors who are interested in learning more about Goldman Sachs’ market outlook can register for the Wednesday, March 2 webcast here.

The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.