Industry Updates

Baader Bank AI-led ETF marks Europe debut for Goldman Accelerator

The ETF uses artificial intelligence to drive stock selection

Theo Andrew

Lisa Mantil

Baader Bank’s AI-driven European equity ETF is the first to launch on the Goldman Sachs ETF Accelerator platform in Europe.

The AI-Enhanced European Equity ETF (EUAI) is listed on the Deutsche Boerse with a total expense ratio (TER) 0.65%.

Benchmarked against the MSCI EMU index, the ETF uses an AI equity selection model to forecast the monthly excess return for each stock in the universe.

The forecasts are generated monthly and incorporated into the quantitative portfolio construction process.

A portfolio is then constructed based on the forecast and its risk model and aims to limit the tracking error to 2% and sector weightings to 2.5%.

AI-focused asset manager Ultramarin developed the strategy and is licensed to Baader Bank, which acts as the fund’s investment manager.

The ETF is labelled Article 8 under the Sustainable Finance Disclosure Regulation (SFDR).

It is the first ETF in Europe to launch on the Goldman Sachs Accelerator platform, which already houses five ETFs with over $3bn assets under management in the US.

Lisa Mantil (pictured), global head of Goldman Sachs ETF Accelerator, said: “As we continue to scale the business and expand our global footprint, we are proud to announce the first fund launched through the platform in Europe and to have supported Ultramarin and Baader Bank in bringing this ETF to market.

“We look forward to continuing to scale the platform and provide our clients around the world with the expertise and infrastructure needed to enter the fast-growing ETF space.”

In an interview last year, Mantil told ETF Stream it had earmarked the end of 2023 to hit the market in Europe.

The group has also been keen to stress it is not a ‘white label platform’ but instead “the first institutional service provider for ETFs”.

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