Goldman Sachs (NYSE: GS) will soon get into the business of white labeling exchange-traded funds (ETFs) for asset management firms, according to a report by the Wall Street Journal.
Quoting Lisa Mantil, a Goldman Sachs partner leading the Goldman Sachs ETF Accelerator, the new platform will not be involved in planning out the strategy for a client’s ETF, it will provide “the infrastructure to get their ETF to market faster and cheaper.”
Mantil said that the service was formed coming from clients who want to offer their own ETFs but have questions about how to do it. The first ETF through this new Goldman platform is expected to launch sometime next year.
ETFs have continuously gained popularity since 2020, due largely to how the funds can be traded like equities but would typically come with lower fees and tax advantages than that of mutual funds. Eric Balchunas, a senior ETF analyst for Bloomberg, sees the move as a “bullish sign for ETFs overall.”
In the last year, the US has seen $500 billion in ETF inflows even amid the increasingly grim economic outlook that’s causing a huge pullback in the stock and bond markets. The figure is almost only half of 2021’s $935 billion but will surpass 2020’s $501 billion.
Information for this briefing was found via Twitter, and the sources and companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
