Goldman Sachs AM Expands Active ETF Range with New Emerging Markets Offering

Goldman Sachs AM (GSAM) has further diversified its suite of active, exchange-traded funds with the London Stock Exchange listing of the Goldman Sachs Alpha Enhanced Emerging Markets Equity Active UCITS ETF on 6 January 2026.

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Hilary Lopez, head of the EMEA Third Party Wealth Business at Goldman Sachs Asset Management

The fund, trading under the ticker GQEM, offers investors a quantitatively driven, active approach to capturing growth in developing economies.

Fund Objective and Strategy

The ETF seeks long-term capital appreciation by actively investing primarily in equity securities of emerging market companies. It is an actively managed fund that, under normal circumstances, will invest at least 70% of its net assets in equity and equity-related securities providing exposure to emerging markets.

The investment process is driven by Goldman Sachs’ proprietary multi-factor quantitative model. This model selects companies regardless of market capitalisation or sector, and may invest in common stock, preferred stock, warrants, and depositary receipts (ADRs, EDRs, GDRs). The fund uses the MSCI Emerging Markets Index (Net Total Return) as a performance benchmark, aiming to achieve a moderate long-term return in excess of this index.

Key Details for Investors

• Ticker & ISIN: GQEM (USD-acc.) | IE000KEFZYE7

• Total Expense Ratio (TER): 0.30% p.a.

• Fund Size: Approximately €5 million

• Inception/Listing Date: 24 June 2025

• Domicile: Ireland (UCITS compliant)

• Primary Listings: London Stock Exchange (USD), XETRA (EUR), Borsa Italiana (EUR), SIX Swiss Exchange (USD)

• Distribution Policy: Accumulating (income is rolled up into the investment value)

ESG Integration and Risk Management

The fund incorporates a multi-faceted approach to environmental, social, and governance (ESG) considerations, specifically aiming to manage climate transition risk relative to its benchmark using proprietary metrics. Like all investments, it carries risks. The fund’s documentation highlights several, including general market risk, emerging markets risk (such as lower liquidity and political instability), derivatives risk, and sustainability risk. The fund may use derivatives for efficient portfolio management and risk control.

Market Context and Comparison

The launch arrives as active ETFs continue to gain market share from traditional passive funds. Goldman’s “Alpha Enhanced” range is designed to leverage the firm’s quantitative research to add value over standard index-tracking products.

Conclusion

The listing of the Goldman Sachs Alpha Enhanced Emerging Markets Equity Active UCITS ETF provides institutional and retail investors with a new, rules-based tool for accessing emerging market equities. It combines the transparency and tradability of an ETF structure with Goldman Sachs’ active quantitative management and a stated focus on ESG factors. As with any investment in volatile emerging markets, potential investors should carefully consider the risks and costs outlined in the fund’s official documents.

Source: ETFWorld.co.uk