There’s a growing interest among asset managers to convert their existing open-end mutual funds into exchange traded funds, especially with the rise of nontransparent active structures. Goldman Sachs Asset Management is the latest to jump on the bandwagon, announcing plans Monday to develop its own proprietary semitransparent equity ETFs, licensing Fidelity’s structure to do so.
Goldman Sachs entered the ETF market in 2015 with the launch of the Goldman Sachs ActiveBeta U.S. Large Cap Equity ETF with an expense ratio of just 9 basis points. The firm tapped Michael Crinieri, who developed some of the first generation ETFs, to head up its ETF business. Now the firm has 19 ETFs, totaling $14 billion in assets under management.
“GSAM is committed to remaining at the forefront of innovation for its ETF products, and this agreement only furthers this goal,” Crinieri said. “Fidelity’s experience and expertise speak for themselves and we are excited to leverage its technology as we work to deliver clients greater optionality and diversity in an exciting new structure.”