In yet another move to launch exchange-traded funds (ETF), The Goldman Sachs Group, Inc. GS, has hired Tony Kelly – the founding member of BlackRock, Inc.’s BLK iShares capital markets. The news first reported by Bloomberg, stated that Tony Kelly will be head of product development for Goldman’s ETF business.
Kelly possesses experience spanning 15 years in the iShares ETF business. Previously, he served Barclays PLC BCS and then BlackRock. Notably, in April Kelly departed from BlackRock.
Goldman seems to tap opportunities from the growing ETF market. The company has been permitted to roll out six actively managed and five passively managed ETFs.
In a May filing, Goldman revealed the names and the ticker codes of six impending actively managed ETFs including – Goldman Sachs ActiveBeta Emerging Markets Equity ETF (GEM), Goldman Sachs ActiveBeta Europe Equity ETF (GSEU) and Goldman Sachs ActiveBeta International Equity ETF (GSIE). The underlying indices of the funds will be focused on securities with high scores on criteria like value, momentum, quality and volatility.
Goldman also declared the names and ticker codes of five passively-managed ETFs. These include – Goldman Sachs Equity Long Short Hedge Tracker ETF (GSLS), Goldman Sachs Event Driven Hedge Tracker ETF (GSED) and Goldman Sachs Relative Value Hedge Tracker ETF (GSRV). These funds will focus on hedge-fund strategies to curb interrelation with the broader equity market trends. (Read more: Goldman Prepares for Grand Entry into the ETF World)
Citing people familiar with the matter, Bloomberg stated that Goldman is likely to commence issuing funds this year. The burgeoning ETF industry has also attracted other Wall Street giants like JPMorgan Chase & Co. JPM that entered the market last year with JPMorgan Diversified Return Global Equity ETF (JPGE).
Notably, 2014 turned out to be momentous for the ETF industry with assets hitting the $2 trillion (approximately) mark. Over 180 ETFs were launched in 2014, higher than last year’s 150 initiations and 2012’s 168 rollouts. Further, 2015 looks promising as a considerable number of ETFs are in the pipeline, reflecting increasing interest of investors for ETF products.
Goldman currently sports a Zacks Rank #2 (Buy).
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