Goldman Sachs is reportedly evaluating the future of its ETF Accelerator platform, a service that assists institutional clients in launching their own exchange-traded funds (ETFs). Sources familiar with the matter have indicated that the bank is exploring various options, including a potential sale of the platform. This strategic review comes as the ETF market experiences significant growth and competition.
This platform operates independently from Goldman Sachs Asset Management’s ETF business. While an internal email has confirmed the exploration of a potential sale, the specific reasons behind this decision remain undisclosed. Importantly, any changes to the ETF Accelerator platform would not impact Goldman Sachs’ own ETF products, which are managed under the asset management arm.
In a statement, Nick Carcaterra, a spokesperson for Goldman Sachs, confirmed the assessment, stating, “We are assessing what the best long-term option is for the ETF Accelerator platform for Goldman Sachs and our clients.” He emphasized that no final decision has been made and there are no immediate plans for any changes. The bank will provide updates if and when available. This news was initially reported by Bloomberg News.
Launched in 2023, the ETF Accelerator facilitated the launch of the first ETFs for client Brandes Investment Partners in October of that year. To date, the platform has supported the launch of 10 ETFs for four clients, including the inaugural ETF issued by GMO, the investment firm founded by Jeremy Grantham.
This relatively modest number contrasts sharply with the broader industry trend. According to State Street Global Advisors, a record 600 ETFs were launched in 2024 as of late November. A Reuters tally indicates approximately a dozen new products were introduced in a single week. This significant difference in volume raises questions about the platform’s strategic fit within Goldman Sachs.
Industry experts offer insights into the potential rationale behind Goldman Sachs’ decision. Bryan Armour, an ETF analyst at Morningstar, suggests that Goldman Sachs might have “miscalculated where the demand for their services might come from.” He points to the success of other firms offering similar solutions, such as Tidal Financial Group and Alpha Architect, as evidence of a competitive landscape.
Previously, Lisa Mantil, global head of the ETF Accelerator, highlighted the value proposition of the platform. She acknowledged that regulatory changes had simplified the ETF launch process for managers, but emphasized that firms could still leverage Goldman Sachs’ “experience and expertise.” This statement underscores the potential benefits of the platform, even in a changing regulatory environment. The strategic review suggests a reevaluation of this value proposition in the context of current market dynamics. Goldman Sachs’ decision regarding the ETF Accelerator platform will likely reflect a broader assessment of its strategic priorities in the rapidly evolving ETF market. The outcome of this review could signal a shift in the bank’s approach to serving institutional clients in the ETF space.
