- ORIGINAL NEWS
Why Goldman Sachs is helping its clients launch ETFs
- SUMMARY
Investment demand for exchange-traded funds (ETFs) remains strong, prompting financial firms to consider offering ETF products to stay competitive.
According to Goldman Sachs expert Steve Sachs, firms that fail to meet this demand risk losing business to competitors who do.
To simplify the ETF launch process for clients, Goldman Sachs launched its ETF Accelerator, a digital platform that provides technology, infrastructure, and risk management expertise.
This platform aims to reduce the time and cost associated with launching ETFs, which typically require years of preparation and specialized knowledge.
Sachs attributes the surge in ETF demand to the implementation of SEC Rule 6c-11 in 2019, which aimed to streamline the ETF launch process.
Despite this regulation, launching an ETF remains a complex and time-consuming endeavor.
Goldman’s ETF Accelerator addresses these challenges, enabling clients to launch, list, and manage their own ETFs more efficiently.
The platform has already facilitated the successful launch of ETFs for companies such as Eagle Capital Management, GMO, and Brandes Investment Partners.
Sachs emphasizes that firms that fail to adapt to the rising demand for ETFs may face the risk of losing clients to competitors.
Therefore, offering ETF products has become a crucial component of staying competitive in the financial services industry.
- NEWS SENTIMENT CHECK
- Overall sentiment:
positive
Positive
“Investor demand for exchange-traded funds is not slowing down, and firms without ETF offerings may risk losing business, according to one Goldman Sachs expert.”
“Launched in 2022 in response to what Sachs described as significant client demand.”
Negative
“Any number of our clients would tell you, the opportunity cost of not [offering ETF products] is greater, he recently told CNBC’s ETF Edge. If a firm does not have ETF offerings, Sachs thinks eventually those assets are going to leave and go to a competitor that does”
“It can still take years to build the expertise, headcount and risk management framework necessary to launch an ETF”