Goldman Sachs Asset Management (GSAM) completed the conversion of two of its fixed income mutual funds to ETFs Monday. Per a press release, GSAM converted the Goldman Sachs Bond Fund and Goldman Sachs Income Fund into the Goldman Sachs Core Plus Bond ETF (GCPB) and the Goldman Sachs Income ETF (GINC), respectively. That move expands their list of active fixed income ETFs to 19, globally, per the release.

Key Takeaways:

• GSAM has converted two of its fixed income funds to ETFs, bringing GINC and GCPB to market.
• The switch leans into the active ETF wrapper, increasing tax efficiency while leaning to active adaptability.
• The two strategies bring the firm’s total roster of active fixed income ETFs to 16, globally, per its release.

Each of the new fixed income ETFs retains “substantially similar” strategies to the corresponding mutual fund. GINC and GCPB will charge 40 basis points (bps), down from 55 and 46, respectively, for their mutual fund versions.

What to Watch for in the Active Fixed Income to ETF Switch

GCPB aims to invest across global fixed income markets, pursuing high income. The active bond ETF looks to balance bottom-up fundamental research with top-down sector positioning. GINC, meanwhile, aims to provide an attractive risk-return profile by actively investing in a range of high-yield, investment-grade, and emerging market debt.

The release additionally touted more than “375 dedicated investment professionals with proprietary risk management capabilities.” That team, the release asserted, can support the two ETFs’ efforts. Together, that feeds GSAM’s more than $2.1 trillion in fixed income offerings.

GSAM’s fixed income ETF slate is led by the ACCESS TREASURY 0-1 YEAR ETF (GBIL) which has $7.5 billion in AUM. That strategy provides exposure to near term duration Treasuriess for a 12-bps fee. The next largest ETF, the Goldman Sachs Ultra Short Bond ETF (GSST), asks a 16-bps fee to actively invest in the competitive ultra-short debt space. GSST holds about $1.6 billion in AUM.

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Looking ahead, the new active ETFs join a growing, and increasingly competitive, active fixed income ETF landscape. For those wanting more from their active fixed income funds, GSAM may have some intriguing offerings.

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