Goldman Sachs Asset Management has launched two new equity ETFs tracking its "ActiveBeta" indices - one focused on Japan, the other on Europe.

Both will follow Goldman's own methodology, dubbed ActiveBeta, which weights stocks on four factors - good value, strong momentum, high quality and low volatility.

The end result is a diversified portfolio of over 400 large-cap stocks and an approach that differs from traditional market-cap weighted or currency-hedged funds.

Both the ActiveBeta Europe Equity ETF and Japan equivalent began trading today on electronic exchange NYSE Arca. 

Each started with $25m worth of assets.

Goldman’s entire ActiveBeta ETF range - which includes US and emerging market funds - now holds more than $1bn worth of assets.

“The expansion of our ActiveBeta suite of ETFs provides investors true diversification through multi-factor solutions across the globe,” said Gary Chropuvka, head of customised beta strategies at Goldman Sachs Asset Management.

“As investors continue to demand a shift away from traditional exposures, we continue to look for opportunities abroad.  We have been following the European recovery story, which in our view may provide a growth opportunity for long-term investors, and despite recent volatility, we believe that Japanese equities may be able to offer value to the market," he added.