Goldman Sachs Unveils Emerging Markets ESG ETF

In a strategic move to tap into the expanding realm of sustainable finance, Goldman Sachs Asset Management (GSAM) has introduced a new active exchange-traded fund (ETF) focused on green and social bonds in emerging markets. Named the Goldman Sachs Emerging Markets Green and Social Bond Active UCITS ETF (GEMS), the fund marks the latest addition to GSAM’s growing suite of sustainable investment products and reflects the firm’s commitment to providing investors with diversified ESG-integrated opportunities.

The newly launched GEMS ETF is designed to actively invest in a diversified portfolio of corporate and sovereign bonds, where the proceeds are earmarked for environmental or social impact projects. These can include initiatives such as renewable energy infrastructure, sustainable agriculture, clean water and sanitation, healthcare access, and affordable housing—causes that align with the broader objectives of the United Nations Sustainable Development Goals (SDGs). What sets this fund apart is its dual focus: it combines deep ESG screening with comprehensive credit analysis specific to emerging markets, allowing it to identify high-potential opportunities while adhering to rigorous sustainability criteria.

The ETF, which is listed on several leading European exchanges including the London Stock Exchange, Deutsche Börse, Borsa Italiana, and SIX Swiss Exchange, comes with a total expense ratio (TER) of 0.55%. This positions it competitively within the active ETF space, especially considering the additional research and due diligence involved in assessing both the ESG credentials and the creditworthiness of emerging market issuers.

According to Bram Bos, Head of the Green, Sustainable, Social & Impact Bond Team at GSAM, the firm’s long-standing experience in managing active green bond portfolios places it in a unique position to drive impact in this growing asset class. “Our approach incorporates in-depth analysis of the use of proceeds and issuer ESG screening, with sound and proven emerging market credit analysis,” said Bos. His comments highlight the strategic blend of sustainability and traditional financial analysis that GSAM believes is critical in generating both returns and long-term environmental and social value.

The launch of the GEMS ETF builds on Goldman Sachs’ recent rollout of a series of active fixed income and equity ETFs across Europe, the Middle East, and Africa (EMEA). These new products are part of the firm’s broader initiative to expand its ETF platform, which now comprises 59 strategies with over $40 billion in assets under management as of April 2025. The growing platform underscores Goldman’s ambition to play a central role in the global transition to more sustainable investment practices, particularly in areas that are underserved or often overlooked, such as emerging markets.

Hilary Lopez, Head of EMEA Third Party Wealth at GSAM, emphasized that investor appetite for high-quality, flexible, and impact-oriented investment solutions is rising. “Following the launch of our core active Fixed Income and Equity building blocks, we are leveraging the leading capabilities and expertise of our Green, Sustainable, Social & Impact Bonds Team to help investors diversify their fixed income exposure and drive impact across emerging markets,” she stated. Her remarks point to a broader trend in which asset managers are seeking to offer tailored, actively managed solutions that go beyond traditional benchmarks to meet the evolving values and objectives of global investors.

The emergence of the GEMS ETF is particularly timely, as institutional and retail investors alike increasingly seek ways to align their portfolios with ESG principles while accessing the growth potential of emerging economies. Many of these countries face systemic challenges such as infrastructure deficits, income inequality, and environmental degradation—but they also offer significant opportunities for high-impact investments that can generate meaningful social and environmental outcomes.

By channeling capital into green and social bond issuances from these regions, the GEMS ETF aims to support a sustainable development trajectory while delivering competitive returns. Its active structure allows for dynamic allocation and deeper issuer engagement—features that are especially valuable in volatile or rapidly changing market environments, often characteristic of emerging economies.

In essence, the launch of the GEMS ETF reflects Goldman Sachs Asset Management’s broader strategy to lead in the ESG space through innovation, research-driven investment processes, and a commitment to impact. As ESG considerations continue to shape investor behavior and global capital flows, products like GEMS offer a pathway to not only diversify fixed income portfolios but also contribute to a more inclusive and sustainable global economy.