Gary Chropuvka, Head of Customized Beta Strategies within the Quantitative Investment Strategies team, said the expansion of its ActiveBeta suite of ETFs demonstrated their commitment to providing ETF investors true diversification through multi-factor solutions across the globe.
“As investors continue to demand a shift away from traditional exposures, we continue to look for opportunities abroad,” Chropuvka said. “We have been following the European recovery story, which in our view may provide a growth opportunity for long-term investors, and despite recent volatility, we believe that Japanese equities may be able to offer value to the market. The additions of GSEU and GSJY to our lineup are the latest additions to the next generation of ETF investing.”
Since their launch, the funds have collectively grown to more than $1 billion in assets, as of March 2, 2016.
GSAM’s current ActiveBeta ETF line-up is outlined below.
GSEU seeks to track the Goldman Sachs ActiveBeta Europe Equity Index, which is constructed using a performance-seeking methodology. This index consisted of 391 securities from issuers across 15 developed market countries in Europe, as of March 2, 2016. GSJY seeks to track the Goldman Sachs ActiveBeta Japan Equity Index, which is constructed using a performance-seeking methodology and consisted of 309 securities as of March 2, 2016.
Each index weights stocks based on four well-established attributes of performance:
- Value— The index identifies stocks from companies that may be undervalued by the rest of the market. This can help investors to gain exposure to high potential stocks that others may have overlooked.
- Momentum— The index identifies stocks with prices that have been growing. This allows investors to participate in market trends.
- Quality— The index identifies stocks from companies that demonstrate sustainable profitability over time. This enables investors to gain exposure to companies with strong fundamentals and potential for consistent returns.
- Low volatility— The index identifies stocks from companies that are expected to avoid extreme price swings. This aims to smooth out the ride, so investors can stay invested for the long term.
The opinions and forecasts expressed herein are solely those of ETF Trends publisher 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.