Goldman Sachs Asset Management Adds New Private Equity ETF

In the latest move in the ever changing ETF landscape, Goldman Sachs Asset Management has launched a new ETF. The firm, which currently offers a suite of ETFs featuring premium income offerings, will now see its roster rise above 61 total ETFs. In addition, it will near $50 billion in AUM — all things for investors to consider. The new fund, a private equity ETF, provides a somewhat different exposure to its other offerings.

See more: Income ETF GPIX Nears $2 Billion in AUM

The firm launched the Goldman Sachs MSCI World Private Equity Return Tracker ETF (GTPE) Thursday, in a move that offers investors a new ETF exposure for private equity. The space could intrigue especially for those looking for further alternative exposures in their holdings. 

New Private Equity ETF Boosts Investment Prospects

GTPE, per the firm’s Press Release, looks to track the performance of the MSCI World Private Equity Return Tracker Index. Charging a 50 basis point (bps) fee, the fund leans on Goldman Sachs’ historical expertise in liquid private assets. It looks at private private equities-like performance via public market equities. The fund will also lean on the firm’s private equities team in effort to offer alternatives investing benefits to clients.

“Investors are increasingly seeking exposure to private investments for the potential to enhance returns and add diversification,” said Brendan McCarthy, Global Head of ETF Distribution at Goldman Sachs Asset Management. “At the same time, there is a desire to access such exposure via a liquid and transparent structure.”

“We are excited to partner with MSCI and bring GTPE to market, which seeks to deliver private market-like returns within the transparent, liquid and lower cost ETF structure,” he added. 

“We are proud to collaborate with Goldman Sachs Asset Management to deliver an innovative index for this new investment solution,” Christine Berg, Head of Americas Index at MSCI, said: “Combining MSCI’s industry-leading private company data, analytical expertise and robust approach to index construction, the MSCI World Private Equity Return Tracker Index supports investment products that seek to offer investors exposure to private equity–like returns with the flexibility of public markets.”

Looking ahead, a fund like GTPE could provide a helpful option for investors. Additionally, with market uncertainty rising, such a strategy could offer a wrinkle for traditional equities portfolios.

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