Goldman explores possible sale of ETF client platform, sources say

(Changes word memo to email in second paragraph)

By Suzanne McGee, Saeed Azhar, Manya Saini

(Reuters) -Goldman Sachs is exploring options, including a potential sale, of its ETF Accelerator platform which helps the bank’s institutional clients launch their own exchange-traded funds, two sources familiar with the matter told Reuters on Friday.

The platform is separate from the ETF business of Goldman Sachs’ asset management arm, the source said, who did not want to be identified because the plans are not public. A second source told Reuters that he had seen an internal email confirming details of the possible sale.

The memo didn’t provide a reason for the possible sale. If Goldman sells or shutters the ETF accelerator, it would not affect the firm’s own ETF products, which are part of Goldman Sachs Asset Management.

“We are assessing what the best long-term option is for the ETF Accelerator platform for Goldman Sachs and our clients,” said Nick Carcaterra, a spokesperson for the bank, in an emailed statement. 

“No decision has been made and there are no imminent plans for a change. If we have an update to share, we will do so,” he added.  

The news was first reported by Bloomberg News. 

Goldman launched the ETF Accelerator in 2023 and oversaw the rollout of the first ETFs for client Brandes Investment Partners in October. To date, it has handled the launch of 10 ETFs for four clients, including the debut of the first ETF issued by GMO, the investment firm founded by Jeremy Grantham.

That compares to the record 600 ETFs the industry rolled out in 2024 as of late November, according to State Street (NYSE:) Global Advisors. Roughly a dozen products were launched this week alone, according to a Reuters tally.

“Maybe they miscalculated where the demand for their services might come from,” said Bryan Armour, ETF analyst at Morningstar, noting that other firms providing similar solutions, like Tidal Financial Group and Alpha Architect, have been “very successful.”

Speaking to Reuters at the time of the GMO ETF launch, Lisa Mantil, global head of the ETF Accelerator, said that while regulatory changes had made it easier for managers to launch ETFs, firms could still benefit from Goldman’s “experience and expertise.”