3 Fast Growing ETF Issuers

December 09, 2015

Goldman Sachs: Assets Under Management Up 218%

For ETF investors, Goldman Sachs Asset Management came into 2015 as a small sponsor of exchange-traded notes with about $170 million in AUM in these strategies. Today the firm has nearly $550 million in AUM tied to a growing roster of ETFs it launched this year. That’s a 218% growth rate year-to-date.

GSAM’s entry into the ETF space was particularly noteworthy because it brought to market smart-beta ETFs at unprecedented low expense ratios. The Goldman Sachs Active Beta US Large Cap Equity ETF (GSLC) and the Goldman Sachs ActiveBeta Emerging Markets Equity ETF (GEM) charge 0.09% and 0.45% in expense ratio, respectively.

In an interview with ETF.com at the time of the launches, Michael Crinieri, global head of ETF strategy for GSAM, said the firm’s ETFs were a response to customer demand. Clearly, that demand is materializing.

WisdomTree: Assets Under Management Up 54%

Coming into 2015, WisdomTree—the only publicly traded ETF company in the U.S.—had ETF assets of about $39 billion. Today the firm is nearing $60 billion.

A lot of that growth has come thanks to WisdomTree’s focus on currency-hedged strategies. In 2014, the firm’s WisdomTree Japan Hedged Equity (DXJ | B-74) made headlines by raking in more than $10 billion in a matter of months as investors bought into Japan’s economic growth story without having to worry about the strength of the dollar.

This year, the WisdomTree Europe Hedged Equity ETF (HEDJ | B-49) has gathered the most assets for the firm. HEDJ is, in fact, the most popular ETF this year, gathering more than $15.4 billion in new assets year-to-date. Like competing DBEF, HEDJ’s popularity is tied to demand for eurozone equities while mitigating the impact a strong dollar has on international stock returns.

Compared to an unhedged strategy such as the iShares MSCI EMU (EZU | A-83), it’s easy to see the appeal of HEDJ’s performance this year, as the chart below shows:

Charts courtesy of StockCharts.com

Contact Cinthia Murphy at [email protected].

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