Goldman Sachs Asset Management (GSAM), the asset management and exchange-traded funds (ETF) arm of The Goldman Sachs Group, Inc. (GS), is adding to its ETF lineup today with the introduction of the Goldman Sachs Access Investment Grade Corporate Bond ETF (GIGB). This is the second fixed-income ETF in Goldman's lineup. New York-based GSAM introduced the Goldman Sachs TreasuryAccess 0-1 Year ETF (GBIL) in September. That ETF is off to a fast start, as highlighted by its nearly $85 million in assets under management.

The Goldman Sachs Access Investment Grade Corporate Bond ETF uses some of the approaches that GSAM found success with in previous ETF launches. For example, the new corporate bond ETF uses a smart beta strategy and comes to market well seeded with $50 million in assets. That makes GIGB one of 2017's most successful new ETFs before it even completes one trading day. (See also: The Smartness of This Smart Beta ETF.)

"GIGB seeks to track the Citi Goldman Sachs Investment Grade Corporate Index (the 'Index'), which is owned and calculated by Citigroup Index LLC (the 'Index Provider'), using concepts developed with GSAM. The Index measures the performance of investment grade, corporate bonds denominated in U.S. dollars that meet certain liquidity and fundamental screening criteria," said GSAM in a statement.

GIGB's underlying index aims to avoid corporate bonds with high default probabilities or the potential for rapid price erosion. Another approach GSAM has used with previous ETFs to rapidly attract assets is low fees, a tradition GIGB adheres to. The new ETF charges 0.14 percent per year, or $14 on a $10,000 investment. That makes GIGB one basis point cheaper than the iShares iBoxx $ Investment Grade Corporate Bond ETF (LQD), the largest corporate bond ETF. (See also: Get Credit With Corporate Bond ETFs.)

Bonds in GIGB's underlying index must have a minimum of $750 million outstanding and at least a rating of BBB- from Standard & Poor's. Convertible bonds are excluded from the index's selection universe. "The bonds universe is screened for big issues and large issuers representing the more liquid portion of the market, and then ranked within their respective industries based on fundamental indicators. Bonds from the lowest ranked 10 percent of issuers are excluded. The remaining bonds from the 90 percent of issuers with high operating margin and low leverage are market capitalization weighted to form the index," according to Citi. (See also: Top 3 Investment Grade Corporate Bond ETFs.)

Want to learn how to invest?

Get a free 10 week email series that will teach you how to start investing.

Delivered twice a week, straight to your inbox.