Goldman Sachs Asset Management has launched the Goldman Sachs Bloomberg Clean Energy Equity ETF, GCLN.
GCLN is designed to offer access to the USD100 trillion+, multi-decade clean energy investment opportunity by seeking to track the Bloomberg Goldman Sachs Global Clean Energy Index, an equity index designed by Goldman Sachs Asset Management and Bloomberg energy sector specialists.
The firm writes that compared with other clean energy ETFs, GCLN offers three key potential advantages:
1. Captures the full universe of clean energy companies, which may result in a more diverse portfolio and lower volatility
2. Drives capital to companies with the greatest potential exposure to clean energy growth through an impact-weighted portfolio construction process
3. Systematically evolves alongside the energy transition using forward looking datasets and analyst insights to capture new clean energy businesses and potential alpha opportunities
Ultimately, the firm writes that GCLN is designed for investors interested in owning “clean energy enablers,” companies that are seizing the secular growth opportunity to combat climate change and provide clean, affordable and reliable energy.
The vehicle seeks to track the index, which focuses capital in companies with the greatest exposure to the clean energy transition. These clean energy exposures are measured using proprietary asset-level datasets and insights from the 200+ global analysts at BloombergNEF (BNEF), a premier energy transition research and advisory service provider for governments, corporations and financiers.
Katie Koch, Chief Investment Officer of Public Equity at Goldman Sachs Asset Management says: “We are delighted to launch GCLN under the corporate mission jointly announced by David Solomon and Michael Bloomberg last year – to help investors capitalise on the opportunities generated by the shift to clean energy in both developed and emerging markets. The ETF and its underlying index build on the strength of our partnership with Bloomberg to direct capital and utilise data in the fight against climate change.”
Vikrum Vora, Portfolio Manager on the Energy Infrastructure & Renewables Team at Goldman Sachs Asset Management says: “We are seeing global investors demand investment solutions with a dynamic investment approach that goes beyond the backward-looking revenue screens typical in most passive vehicles. As such, we are excited to have partnered with Bloomberg to incorporate BNEF intelligence into GCLN. The BloombergNEF inputs are a key differentiator for GCLN, ensuring that it evolves alongside the energy transition and is a useful tool for investors who are increasingly reallocating capital to align with their long-term climate and financial goals.”
Dave Gedeon, Global Head of Multi-Asset Indices at Bloomberg says: “With a continuously evolving market, clean energy companies needed a new benchmark to better understand the performance within the sector. We believe our proprietary approach fuelled by BloombergNEF data and analytics has met our objectives and we’re proud to have Goldman continue to support our joint efforts with the launch of their ETF.”
Michael Crinieri, Global Head of ETFs at Goldman Sachs Asset Management, says: “We pride ourselves on our ability to deliver innovative products that meet client demand and market need, as we have continued to do with this new clean energy equity ETF. GCLN will provide investors with intelligent exposure to this increasingly important segment of the market, backed by the global platform and resources of Goldman Sachs.”
More broadly, Goldman Sachs’ commitment to sustainable finance goes beyond this ETF and spans all business segments as the firm has made a pledge to deploy USD750 billion in financing, investing and advisory activity by 2030 to accelerate climate transition and advance inclusive growth.