Goldman Sachs is set to get into the ETF white label business via its Goldman Sachs’ ETF Accelerator, enabling its clients to list, launch, and manage their ETFs in one place. The newly launched digital platform will be led by partner Lisa Mantil who joined the bank’s Executive Office from the Global Markets Division earlier this year.
Goldman Sachs does not plan to define the clients’ ETFs for them according to the Wall Street Journal, with the first ETF via the digital platform due to arrive next year. The platform is geared toward active managers, including mutual fund and SMA managers that want to convert their existing strategies.
The investment bank’s ETF incubator arrives as the number of launches continues to grow, with new issuers arriving all the time to grow the diversity of offerings available in the flexible wrapper.
“Goldman Sachs has always been at the forefront of investment innovation. Many of their clients have proven to be excellent asset managers as well,” said Vettafi Vice Chairman Tom Lydon. “With this strategic move, Goldman Sachs can help them bring more investment strategies to the market within today’s more popular investment wrapper: the ETF.”
“This solution allows Goldman Sachs clients to focus on what they do best while benefiting from the latest ‘go to market’ pipeline today,” Lydon added.
While other white labels have made a name for themselves as ETF advisers, helping boutiques launch their bespoke investment strategies, none so far have brought the institutional knowledge and heft that Goldman offers.
Not only does Goldman Sachs’ move add massive competition for other white label providers, but it also presents a solid third option looking to get into ETFs. While firms previously would build in-house or buy an existing issuer, a white label with Goldman Sachs’ imprint may open up a new stage for the ETF industry with more ETF issuers in play than ever.
This year already has seen the explosion of single-stock ETFs, while prior years have seen active, non-transparent ETFs proliferate. Goldman Sachs may not only attract boutiques, either but also mid-size asset managers that have long-running, well-performing strategies that they have hesitated to convert or clone due to either lack of resources or the branding power that Goldman Sachs can provide.
“Goldman has established a strong ETF brand and expertise since entering the market a few years ago,” said Vettafi head of research Todd Rosenbluth. “Given their deep relationships within the financial services industry, they are positioned to help clients succeed when entering the ETF industry.”
Investors looking for new, actively managed strategies with strong backing should follow further news about Goldman Sachs’ ETF Accelerator.
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