Goldman Sachs Emerging Markets & Sovereigns Bond Active ETF

Issuer: Goldman Sachs

Asset Class: Fixed Income

TER: 55bps

Trading Currency: USD

Pays Income: False

Listing Date: 18 Jun 2025

Ticker: GEMS

ISIN: IE000EC86C06

This actively managed fund seeks to generate total return, comprised of both income and capital appreciation, by investing in a diversified portfolio of fixed-income securities. The primary focus is on debt instruments issued by sovereign and quasi-sovereign entities within emerging market countries. The investment team employs a comprehensive approach, combining top-down macroeconomic analysis with bottom-up security selection. This involves evaluating geopolitical trends, country-specific fundamentals, and individual bond characteristics to identify compelling opportunities across the entire emerging market debt landscape.

The management philosophy is centered on rigorous fundamental research and proactive risk management. The portfolio managers have the flexibility to invest in both hard and local currency denominated debt, enabling them to adapt to evolving market conditions and capitalize on relative value. By actively managing key risk factors such as duration, credit quality, and currency exposure, the fund aims to outperform its reference benchmark and deliver attractive risk-adjusted returns. This active strategy allows the team to exploit market inefficiencies that may be overlooked by passive, index-tracking approaches.

This product can serve as a core strategic allocation for investors seeking dedicated exposure to the emerging market fixed-income asset class. Its active management offers the potential for enhanced returns and more dynamic risk mitigation compared to passive alternatives, which is particularly valuable in the often-volatile environment of developing economies. The focus on sovereign and quasi-sovereign debt provides access to the higher growth potential and yield advantages of these markets, typically with a higher credit quality profile than their corporate counterparts. It is designed for investors with a medium to long-term horizon who wish to diversify their fixed-income holdings.