A Closer Look At Goldman Sachs’ Growing Lineup Of Active ETFs

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April 25, 2017 11:55am NYSE:GSLC

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We have been devoting more coverage lately to relative newcomers to the ETF issuance space, and today is no exception.


Most of these issuers are well-known active managers of equity and fixed income portfolios whom have thrown their hat into the ETF ring after decades of institutional money management in other segments of the market (SMAs, Mutual Funds, Retirement Plans and Pensions, etc.). Goldman Sachs is one such manager as they debuted their “ActiveBeta” products into the ETF issuer market in September of 2015, and currently have a lineup of nine ETFs.

We should note that Goldman has hung around as an ETP issuer for the past decade or so with their ownership of minor funds like GSC (Goldman Sachs Connect S&P GSCI Enhanced Commodity Total Return ETN, Expense Ratio 1.25%) and GCE (Goldman Sachs Claymore CEF GS Connect ETN, Expense Ratio 0.95%), but in 2015 they made a splash as a full-fledged presence in the space.

The largest fund in the family in terms of asset size, known as GSLC (Goldman Sachs ActiveBeta U.S. Large Cap Equity, Expense Ratio 0.09%, $1.8 billion in AUM), has caught some attention lately in the marketplace with several large block volume trading days in the middle of April, and the fund itself is trading at new all-time product highs today on another broad-based equity rally.

Year-to-date, GSLC has seen an impressive over $350 million enter the fund via creations, adding to its growing asset base. Assuming that we know nothing about the fund, the first thing that strikes us is the very low expense ratio given the fund’s title, in terms of being marketed as “Active Beta.” Goldman Sachs, by nature, has been known as an active manager for decades, so we should not be surprised that these funds are not structured nor classified as passive index funds.

Several other “ActiveBeta” products are also offered currently, notably GEM (Goldman Sachs ActiveBeta Emerging Markets Equity, Expense Ratio 0.45%, $1 billion in AUM), GSIE (Goldman Sachs ActiveBeta International Equity, Expense Ratio 0.35%, $418 million in AUM), GSJY (Goldman Sachs ActiveBeta Japan Equity, Expense Ratio 0.25%, $34 million in AUM), and GSEU (Goldman Sachs ActiveBeta Europe Equity, Expense Ratio 0.25%, $31 million in AUM).

All of the funds, particularly GEM, have more than respectable levels of assets given the fact that none of these have been on the market for very long.

GSLC-2017-04-25

The Goldman Sachs ActiveBeta U.S. Large Cap Equity ETF (NYSE:GSLC) was trading at $47.39 per share on Tuesday morning, up $0.19 (+0.40%). Year-to-date, GSLC has gained 6.83%, versus a 6.68% rise in the benchmark S&P 500 index during the same period.

GSLC currently has an ETF Daily News SMART Grade of A (Strong Buy), and is ranked #15 of 108 ETFs in the Large Cap Blend ETFs category.


Disclaimer: The content of this article is excerpted from a daily newsletter from Street One Financial. While ETF Daily News may edit the contents and add a relevant title to the piece, the author, Paul Weisbruch, does not endorse or recommend any issuer or security mentioned herein.

About the Author: Paul Weisbruch

paul-weisbruchPaul Weisbruch is the VP of ETF/Options Sales and Trading at Street One Financial. Prior to joining the team at Street One, Paul served as the Director of RIA and Institutional ETF Sales at RevenueShares ETFs from December 2007 until November of 2009. Before RevenueShares, Paul was employed by Susquehanna International Group from 2000 until 2007 serving in roles including OTC/NYSE Institutional Block Trading, Nasdaq/OTC Market Making, ETF/Derivatives Intelligence and Strategy, Algorithmic Trading, as well as acting as the PHLX Floor Specialist in the ETFs, SPY and DIA.Paul has been actively involved in the ETF space from both a product and trading standpoint since 2000. Additionally, Paul has well forged relationships with national RIAs, institutional pension fund managers and consultants, mutual fund and hedge fund managers, and also the ETF media. Co-authoring the “S1F ETF Daily” since 2009, the daily piece has become a must for many portfolio managers in the ETF space, with segments regularly appearing in the likes of Barron’s, WSJ, and ETFTrends.com for instance.

He holds his Series 4 (Registered Options Principal), 6, 7, 55 (Equity Trader), 63, and 65 licenses. He graduated from the University of Pittsburgh (B.S. – Economics), graduating magna cum laude, and has an MBA from Villanova University.


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