Goldman Sachs Adds Emerging Markets ETFs with Quantitative Twist

Goldman Sachs Asset Management has expanded its lineup of exchange-traded funds (ETFs) with two new additions, targeting emerging and international equities. The Goldman Sachs Data Enhanced Emerging Markets Equity ETF (GEMQ) and the Goldman Sachs Data Enhanced International Equity ETF (GIEQ) are now available to investors.

The duo is designed to provide diversification away from the high valuations of U.S. stocks, with GEMQ investing at least 80% of its assets in emerging markets and GIEQ focusing on non-U.S. international equities. The funds use quantitative strategies developed by GSAM's Quantitative Investment Strategies (QIS) team, which has over 35 years of experience.

'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. The funds charge fees of 40 basis points (bps) and 30 bps respectively.

The launch brings GSAM's total list of ETFs to over 70 worldwide, with the company managing more than $130 billion in ETF assets as of June 30. The new ETFs join other Goldman Sachs offerings, including the Goldman Sachs ActiveBeta Emerging Markets Equity ETF (GEM A-), which has returned 24.5% year-to-date.