Goldman Sachs Accelerator Launches First European ETF

Goldman Sachs Accelerator Launches First European ETF

Baader Bank ETF uses artificial intelligence to pick stocks.

Reviewed by: Ron Day
Edited by: Staff

Baader Bank’s AI-driven European equity ETF is the first to launch on the Goldman Sachs ETF Accelerator platform in Europe.

The AI-Enhanced European Equity ETF (EUAI) is listed on the Deutsche Boerse with a total expense ratio (TER) 0.65%.

Benchmarked against the MSCI EMU index, the ETF uses an AI equity selection model to forecast the monthly excess return for each stock in the universe. The forecasts are generated monthly and incorporated into the quantitative portfolio construction process. A portfolio is then constructed based on the forecast and its risk model and aims to limit the tracking error to 2% and sector weightings to 2.5%.

New York-based Goldman Sachs Group Inc., which manages $34.7 billion in its 40 U.S. ETFs, introduced the accelerator in late 2022. This past November it introduced its first funds, three actively managed ETFs from Brandes Investment Partners. It now includes five U.S. ETFs with more than $3 billion assets.

AI-focused asset manager Ultramarin developed the strategy and is licensed to Baader Bank, which acts as the fund’s investment manager. The ETF is labelled Article 8 under the Sustainable Finance Disclosure Regulation (SFDR).

Goldman Sachs Accelerator

Lisa Mantil, global head of Goldman Sachs ETF Accelerator, said in an interview that it had earmarked the end of 2023 to hit the market in Europe.

The group has also been keen to stress it is not a ‘white label platform’ but instead “the first institutional service provider for ETFs."

In the U.S., Goldman's largest ETF is the Goldman Sachs ActiveBeta U.S. Large Cap Equity ETF (GSLC) with $12.3 billion in assets. In the last trailing year, the best-performing Goldman Sachs ETF was Goldman Sachs Hedge Industry VIP ETF (GVIP) at 35%. The most recent ETF launched in the Goldman Sachs space was the Goldman Sachs MarketBeta Russell 1000 Value Equity ETF (GVUS) on Nov. 30.

Theo Andrew joined ETF Stream as a senior reporter in September 2021. He has over four years of investment writing experience spanning pensions and retail investments, most recently at Citywire, where he was a senior reporter covering environmental, social and governance investing.