Goldman Sachs Asset Management (GSAM) has launched a UK gilts ETF with a duration of one to 10 years, ETF Stream can reveal.
The Goldman Sachs Access UK Gilt 1-10 Years UCITS ETF (GBPG) is listed on the London Stock Exchange with an expense ratio (TER) of 0.07%.
GBPG will track the FTSE Goldman Sachs UK Gilts 1-10 Years index which offers exposure to UK gilts between one and 10 years duration.
The index was developed in partnership with FTSE Russell and aims to optimise the carry and roll return through maturity allocation.
Commenting on the launch, Peter Thompson (pictured), head of European ETF business at GSAM, said: "With low interest rates and potential for rate increases on the horizon, we have seen domestic demand from investors who want shorter duration gilts exposure whilst maintaining some yield pick-up.
“This is an index utilising the expertise of our Goldman Sachs active fixed income portfolio management and trading teams and we wanted the ability to offer all investors access to this through the ETF.”
GSAM entered the ETF market European ETF market just over two years ago with the launch of the Goldman Sachs ActiveBeta US Large Cap Equity UCITS ETF (GSLC), shortly followed by a whole range offering exposure to various markets, asset classes and investment styles.