Goldman Sachs’ ETF Advisory Debuts as Demand Jumps

Goldman Sachs’ ETF Advisory Debuts as Demand Jumps

Bank’s ‘Accelerator’ to advise clients on launches, portfolios.

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Reviewed by: Shubham Saharan
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Edited by: Shubham Saharan

Investment bank Goldman Sachs Inc., which runs 32 exchange-traded funds, started a new unit that advises clients on how to launch and operate ETFs as demand for those products rises. 

In the latest installment in its growing ETF arm, Goldman launched the ETF Accelerator, offering asset management clients advice for fund launch processes, portfolio implementation and capital markets solutions, according to a company statement on Tuesday. The business is headed by partner Lisa Mantil, who previously headed Goldman’s program and electronic trading distribution in the Americas, according to her LinkedIn profile.  

Advisory services may surge in demand as the ETF industry surges. In October, ETF inflows notched a new monthly record, bringing in $91.5 billion, surpassing highs previously seen in March of this year. In the past five years, ETFs have pulled in over $6 trillion in assets, according to ETF.com data. Goldman manages $24.9 billion in ETFs that invest in equities, bonds and commodities. 

The bank is seeking to give clients access to “the fastest growing part of the investment management industry,” it said in a statement emailed to ETF.com.  

Mantil said on the Goldman website that advisory services are needed because clients anticipate rising demand for actively managed ETFs: “They want to be a part of that growth but don’t have the expertise or infrastructure to do so.”  

In the first three quarters of 2022 alone, 319 ETFs were launched, nearing the 334 launched in 2021, ETF.com data shows. Among those were the Goldman Sachs MarketBeta US 1000 Equity ETF (GUSA) in April, and the New York-based bank’s ESG fund, the Goldman Sachs Bloomberg Clean Energy Equity ETF (GCLN), which debuted in February of this year.  

 

Contact Shubham Saharanat[email protected]   

Shubham Saharan is a markets reporter at etf.com. Before joining the company, she reported for Bloomberg and the Financial Times. Saharan is a graduate of Barnard College of Columbia University.