The Goldman Sachs Access China Government Bond UCITS ETF (CBND) is set to list on Börse Frankfurt on 24 October with a total expense ratio (TER) of 0.35%.
Tracking the FTSE Goldman Sachs China Government Bond index, the ETF offers investors exposure to the Chinese government bond market by leveraging Bond Connect, the new market access scheme.
The launch follows a number of index providers' decision to include Chinese government bonds in major indices such as the Bloomberg Barclays Global Aggregate Bond index in April and the JP Morgan Government Bond Index Emerging Markets indices from February next year.
The firm predicts Chinese government bonds will benefit from a major windfall once the inclusions take place.
Andrew Wilson, CEO of GSAM International and global head of fixed income, commented: “This latest launch marks the next step in our efforts to deliver more choice for clients with a new route into the Chinese bond market.
“We believe investors stand to benefit from additional geographical and currency diversification, alongside exposure to the maturing Chinese economy, by accessing this market in a smart, cost-efficient way.”
Peter Thompson (pictured), head of ETFs, EMEA, at GSAM, added: “We remain focused on providing clients with choice as we build our ETF capability in Europe and this product brings together the best of GSAM’s investment expertise in an accessible format.”
This is GSAM’s second ETF launch since entering the European ETF space in September. The first was the was a copy of a flagship US strategy, the Goldman Sachs ActiveBeta US Large Cap Equity UCITS ETF (GSLC).
Thompson told ETF Stream the firm will launch up to 10 ETFs in Europe by the end of Q1 next year.