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Goldman Sachs Launches Emerging, International Equities ETFs

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  • GEM
Goldman Sachs Asset Management launched two new ETFs Monday, expanding exposure to emerging and international equities. The ETF duo includes the Goldman Sachs Data Enhanced Emerging Markets Equity ETF (GEMQ) and the Goldman Sachs Data Enhanced International Equity ETF (GIEQ). That pair joins an ETF landscape in which those segments are seeing growing interest.Key Takeaways: The duo of GEMQ and GIEQ offer ways to get diversification away from red hot U.S. stock valuations. They join GSAM’s ex-U.S. ETFs like GEM, which has returned 24.5% YTD itself. The new pair of funds’ quantitative strategies offer an advantage in lower information ex-U.S. markets. According to a press release, GEMQ invests at least 80% of assets in emerging markets. GIEQ does the same in non-U.S. international equities. The pair of ETFs are managed by GSAM’s Quantitative Investment Strategies (QIS) team, per the release. That team uses quant methods with over 35 years of experience to boost the pair of ETFs. “With GEMQ and GIEQ, we are expanding access to systematic, data-enhanced strategies designed to help investors capture opportunities across international and emerging markets,” said GSAM global head of ETF distribution Brendan McCarthy. “These launches are a natural extension of our growing ETF platform and reflect our continued focus on meeting investors’ evolving needs.” The funds, listed on the NASDAQ, charge 40 basis points (bps) and 30 bps respectively. They bring GSAM’s total list of ETFs to more than 70 worldwide. As of June 30, GSAM and its recent acquisitions Innovator and NEOS Investments together managed more than $130 billion in ETF assets. “International and emerging markets present immense scale, structural complexity, and market inefficiencies,” said GSAM co-head of Quantitative Investment Strategies. “By combining human insight with our data-driven investing platform, GEMQ and GIEQ seek to offer investors an informational edge and consistent, differentiated alpha while retaining the risk discipline, transparency, and cost efficiency of the ETF wrapper.” See more: Active Tech ETF GTEK Beats Tech ETF Average By 20% Those funds join the likes of the Goldman Sachs ActiveBeta Emerging Markets Equity ETF (GEM A-). GEM charges a 35 bps fee to apply a multifactor approach to emerging markets equities. The fund has returned 24.5% YTD with that approach. Should the new emerging and international equities ETFs from GSAM perform similarly, they may be worth watching for diversification and potential upside. For more news, information, and strategy, visit the Future ETFs Content Hub.

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