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Goldman Sachs Launches First Bond ETF: Portfolio Products

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Goldman Sachs Asset Management launched its first in a series of fixed income ETFs. It’s Goldman Sachs Access Investment Grade Corporate Bond ETF (GIGB) tracks an index that uses a transparent, rules-based methodology designed to exclude bonds that have the greatest potential to default or deteriorate in price.

The ETF began trading trading on the NYSE Arca on June 8 with $50 million in assets and has an expense ratio of 14 basis points.

“This is a unique opportunity to revolutionize the fixed income ETF space, providing investors with exposure to bond markets while seeking to deliver smoother performance at a lower cost,” said Michael Crinieri, GSAM’s global head of ETF strategy, in a statement.

GIGB tracks the Citi Goldman Sachs Investment Grade Corporate Index, which is owned and calculated by Citigroup Index LLC, using concepts developed with GSAM. The index measures the performance of investment grade, corporate bonds denominated in U.S. dollars that meet certain liquidity and fundamental screening criteria and screens for liquidity and fundamental factors to limit exposure to illiquid, volatile and underperforming assets.

GIGB is managed by GSAM’s Global Fixed Income team whose deep market expertise and extensive resources will aid in trade execution and optimizing portfolio construction.

NuShares Expands its Suite of ESG ETFs with Two International Equity Strategies

Nuveen launched two new ETFs that track indices employing environmental, social and governance (ESG) criteria.

The NuShares ESG International Developed Markets Equity ETF (NUDM) and NuShares ESG Emerging Markets Equity ETF (NUEM) trade on the Bats Exchange and seek to track the investment performance of the TIAA ESG International Developed Markets Equity Index and TIAA ESG Emerging Markets Equity Index, respectively.

This latest offering complements NuShares’ recently launched domestic equity ESG ETFs.

“As we designed our latest ETF offering, we wanted to squarely address investors’ desire to diversify their core equity portfolio with investment options that not only provide key benchmark exposure, but also align their international equity investments with their values,” said Martin Kremenstein, senior managing director and head of exchange-traded funds at Nuveen, in a statement.

USA Financial Launches Custom-Built STP System 

USA Financial announced the launch of its own straight-through-processing (STP) tool for advisors.

The firm’s STP system, built over a two-year period, modernizes the submission of account opening and maintenance forms into an entirely electronic process, which includes e-signature and delivery of signed documents to all parties. This custom-built solution works in concert with some of the industry’s leading software systems, all of which are bundled into the firm’s technology package.  

In addition to STP eliminating the overnight shipping component of submitting new business forms, opportunities for errors are less due to built-in, enhanced form validation.

Advisors can remotely engage with their clients, which means office visits to open accounts are no longer required. The process also offers convenience because it can be accessed online from any device without the need for installed software on advisor or client devices.

 –Read last week’s portfolio product roundup: Fidelity Launches Municipal Income 2025 Fund: Portfolio Products


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