The ETF industry has been taking giant strides since last year with many issuers launching products with varied themes, while several others making inroads into the field. And if 2014 turned out a historic year for the ETF industry with assets hitting the $2 trillion (approximately) mark and over 180 ETFs being rolled out, 2015 looks even more promising (read: 5 Very Successful ETF Launches of 2014 ).
Last year, we saw J.P. Morgan Chase & Co. entering the market with JPMorgan Diversified Return Global Equity ETF ( JPGE ). Now, another banking behemoth - Goldman Sachs Group Inc. - is following suit. The issuer has already been permitted to roll out six actively managed and five passively managed ETFs. Apparently, the issuer is leaving no stone unturned to see success in this arena. It has filed funds in almost every renowned ETF space.
Most recently, Goldman disclosed the names and the ticker codes of six impending actively managed ETFs. The underlying indices of the funds will look for securities with high scores on criteria like value, momentum, quality and volatility. Below we detail the funds.
Goldman Sachs ActiveBeta Emerging Markets Equity ETF (GEM)
Emerging market is a bright spot in ETF investing given the high-growth and high-yield potential. So, a fund in this jam-packed but promising area is quite expected. The fund will face stiff competition from the likes of FTSE RAFI Emerging Markets Portfolio ( PXH ), iShares MSCI Emerging Markets Minimum Volatility ETF ( EEMV ) and Morningstar Emerging Markets Factor Tilt Index Fund ( TLTE ).
Goldman Sachs ActiveBeta Europe Equity ETF (GSEU)
Europe has been grabbing eyeballs since the start of 2015 given the ECB's launch of the QE program and the continent's record-low interest rate environment. GSEU targets the developed Europe. Products like Europe AlphaDEX Fund ( FEP ), iShares MSCI Europe Minimum Volatility ETF ( EUMV ) and Diversified-Factor Developed Europe Index Fund ( SBEU ) could give GSEU a run for its money.
Goldman Sachs ActiveBeta International Equity ETF (GSIE)
This fund will look beyond the U.S. border and give investors exposure in Europe, Canada, Middle East and the Asia-Pacific. Most of the nations in this region are thriving on easy money and thus act as a lucrative investment proposition. SPDR MSCI World Quality Mix ETF ( QWLD ), D orsey Wright International Focus 5 ETF ( IFV ) and SPDR MSCI ACWI IMI ETF ( ACIM ) might give tough competition.
Goldman Sachs ActiveBeta Japan Equity ETF (GSJY)
Japanese stocks are hovering around multi-year highs on intense monetary easing. The Central Bank boosted its asset buying program to 80 trillion yen a year in October 2014 from the previous rate of 60-70 trillion yen to jumpstart a sagging economy.
So, a pure play ETF on Japan appears rational. There are plenty of ETFs on Japan - any of which could be a strong peer. Japan AlphaDEX Fund ( FJP ) and SPDR MSCI Japan Quality Mix ETF ( QJPN ) are to name a few (read: Nikkei Hits fresh 15-Year High: 3 Japan ETFs to Buy ).
Goldman Sachs ActiveBeta U.S. Large Cap Equity ETF (GSLC)
This fund seeks to offer exposure in the U.S. large cap equities employing momentum, value, volatility and quality. While U.S. large caps might be troubled by a stronger dollar scenario, an active and efficient approach in stock picking should help GSLC gain an edge of over the plenty of U.S. large cap ETFs presently on offer. iShares Enhanced U.S. Large-Cap ETF ( IELG ) can be a tough competitor in this space (read: : Active Large Cap ETFs: The Best of Both Worlds? ).
Goldman Sachs ActiveBeta U.S. Small Cap Equity ETF (GSSC)
This fund targets the small-cap field of the U.S. equity market. With the U.S. economy growing at one of the best clips in the developed market space, what could be a better option to play the revival than a small-cap U.S. ETF with smart-beta criteria? After all, these pint-sized equities best paint the picture of an economy. Needless to say, the space is teeming with products wherein iShares Enhanced U.S. Small-Cap ETF ( IESM ) is a strong contender.
Name of the Passively-Managed ETFs
Goldman also declared the names and ticker codes of five passively-managed ETFs. These are Goldman Sachs Equity Long Short Hedge Tracker ETF (GSLS), Goldman Sachs Event Driven Hedge Tracker ETF (GSED), Macro Hedge Tracker ETF (GSMC), Goldman Sachs Multi-Strategy Hedge Tracker ETF (GSMS) and Goldman Sachs Relative Value Hedge Tracker ETF (GSRV). These funds focus on hedge-fund strategies to curb interrelation with the broader equity market trends. The fund will face stiff competition from the likes of IQ Hedge Multi-Strategy Tracker ETF ( QAI ) and Hedge Replication ETF ( HDG ).
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