First ETFs Emerge From Goldman Sachs Accelerator

First ETFs Emerge From Goldman Sachs Accelerator

The firm lends its infrastructure to issuers so they can launch funds within six months.

LucyBrewster310x310
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Finance Reporter
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Reviewed by: Lisa Barr
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Edited by: Ron Day

Goldman Sachs is ramping up its newly launched ETF Accelerator, aiming to tap into the growing demand from its clients to launch their own active ETFs.  

The ETF Accelerator was first announced in November. Goldman created the platform to assist its clients in all stages of the extensive exchange-traded fund launching process, from SEC filings to implementing the issuer’s portfolio.  

While the ETF industry is booming, many firms that aim to tap into growing investor demand don’t necessarily have the financial resources or time to independently design and launch funds. Barriers include SEC regulatory hurdles and the challenges of raising capital and fees. Goldman Sachs aims to help such firms get an ETF product to market within six months.  

Yet the financial services and banking giant insists it is not a “white label issuer,” which is a firm that provides the infrastructure for an issuer to launch an ETF and shares profits with the sponsor firm. Goldman is not listed as an advisor or subadvisor in the issuing firm’s filing, but as a consultant.  

“We're not the advisor, we're not the sub advisor and we’re not a white labeler. We’re really an institutional service provider stepping into the space,” said Lisa Mantil, the global head of Goldman Sachs ETF Accelerator. 

Goldman Sachs ETF Infrastructure 

Other Goldman clients have filed to launch their first ETFs so far. Eagle Capital Management, the investment management firm, filed for its first ETF in early June, the Eagle Capital Select Equity ETF (EAGL), which aims to target undervalued equities. The filing also proposes three funds advised by Brandes Investment Partners, including U.S. active value funds and an active international midcap to large cap equity fund.  

Jeremy Grantham’s asset management firm GMO also leveraged the accelerator to file for its first ETF, the GMO U.S. Quality ETF (QLTY), on Aug. 21. 

The accelerator, which is a separate business unit from Goldman Sachs’ own 36 branded ETF offerings, with $30 billion in assets, is expected to expand internationally.  

“We've been extraordinarily pleased at the number of different use cases across all types of investment managers. Since we launched the business in November of 2022 we have met with hundreds of clients,” said Mantil.  

 

Contact Lucy Brewster at [email protected] 

Lucy Brewster is a finance reporter at etf.com covering asset managers, emerging technologies, and regulation. She hosts etf.com webinars and appears on Exchange Traded Fridays, etf.com’s flagship podcast. She previously was a finance fellow at Fortune Magazine where she covered markets, investment strategy, and venture capital. She has also been a freelancer writer at the publication Mergers & Acquisitions and a research fellow at the Historic Hudson Valley. 

She graduated from Vassar College in 2022 with a degree in History and was an editor of The Miscellany News, the college's award winning student run newspaper. 

Lucy lives in Brooklyn, NY, and in her free time she loves to run and find new recipes to cook.