Goldman Sachs Asset Management launched a new actively managed exchange-traded fund on Wednesday, focusing on emerging market bonds tied to green and social projects, thereby expanding its range of sustainable investment offerings in Europe.

The Goldman Sachs Emerging Markets Green and Social Bond Active UCITS ETF will primarily invest in corporate and sovereign fixed-income securities from issuers in emerging markets that intend to use the proceeds for environmental or social initiatives.

UCITS ETF is an exchange-traded fund that complies with the Undertakings for Collective Investment in Transferable Securities framework, a European Union regulatory framework governing investment funds.

Essentially, it’s a type of fund that adheres to specific rules designed to protect investors, particularly in terms of diversification and risk management.

According to the company’s statement, the exchange fund, which will be listed on major European exchanges, including the London Stock Exchange, Borsa Italiana, Deutsche Börse, and SIX, carries a total expense ratio of 0.55 percent.

Sustainable Focus with Active Strategy

The new fund leverages the firm’s Green, Sustainable, Social & Impact Bond Team, which oversees more than $15 billion in assets and has nearly a decade of experience in the sector.

The investment approach combines emerging market credit analysis with scrutiny of how proceeds are used, incorporating ESG screening and issuer-level evaluation.

“As a leading active green bond fund manager, we believe Goldman Sachs Asset Management is uniquely positioned to give investors access to this quickly growing asset class,” said Bram Bos, head of the team, in a statement. “Our benchmark-aware process blends deep ESG insight with proven EM credit analysis.”

Expanding ETF Presence in Europe

The launch comes amid Goldman Sachs Asset Management’s recent push into active ETFs in Europe, the Middle East, and Africa, with several new fixed-income and equity funds rolled out in the region.

The firm now manages 59 ETF strategies globally, representing more than $40 billion in assets as of April 30.

Hilary Lopez, head of the EMEA Third Party Wealth Business at Goldman Sachs Asset Management, said investor appetite for active strategies within ETF structures continues to rise.

“Following the launch of our core active Fixed Income and Equity building blocks, we are leveraging the leading capabilities of our Green, Sustainable, Social & Impact Bonds Team to help investors diversify fixed income exposure and drive impact across emerging markets,” Lopez said.

The fund aims to appeal to investors seeking both sustainable outcomes and exposure to growth potential in emerging economies, amid heightened interest in ESG-focused instruments.

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