In today’s financial landscape, investor demand for exchange-traded funds (ETFs) continues to grow at a rapid pace. Firms that do not offer ETF products to their clients may find themselves at risk of losing business, according to industry experts. One such expert, Steve Sachs, the global chief operating officer of Goldman’s ETF Accelerator, highlights the significance of keeping up with current investment trends. Sachs emphasizes that the opportunity cost of not offering ETF products can be far greater than the initial time and resources required to launch them. He believes that assets may eventually leave firms that do not have ETF offerings and move to competitors who do.
To assist clients in launching their own ETF products, Goldman Sachs developed the ETF Accelerator, a digital platform that streamlines the process of launching, listing, and managing ETFs. This initiative was launched in response to increasing client demand for ETF strategies. The platform aims to provide clients with the necessary technology, infrastructure, and risk management expertise to bring ETFs to market quickly and cost-effectively. Sachs mentions that the accelerator has facilitated the launch of several ETFs, including Eagle Capital Management’s Select Equity ETF (EAGL), GMO’s U.S. Quality ETF (QLTY), and three funds from Brandes Investment Partners.
While the demand for ETFs is high, launching these products can still be a complex and time-consuming process. It requires firms to build expertise, headcount, and risk management frameworks, which can take years to develop. Sachs acknowledges that the road to launching an ETF independently can be arduous and expensive. However, with the assistance of Goldman’s ETF Accelerator, clients can leverage the firm’s resources and expertise to expedite the process and reduce costs. The platform enables clients to launch and manage their ETFs more efficiently than if they were to do it on their own.
Several clients have found success in utilizing Goldman’s ETF Accelerator to launch their ETF products. Eagle Capital Management, GMO, and Brandes Investment Partners have all benefited from the platform’s capabilities. These firms recognized that building ETFs independently would be costly and time-consuming, prompting them to seek assistance from the accelerator. By leveraging Goldman’s technology and expertise, these clients were able to bring their ETFs to market faster and more economically. The success stories of these clients underscore the importance of offering ETF products to meet the evolving needs of investors in today’s market.
The demand for exchange-traded funds continues to rise, and firms that do not offer ETF products to their clients may miss out on valuable opportunities. By providing clients with access to ETFs through platforms such as Goldman’s ETF Accelerator, firms can stay competitive in the ever-changing investment landscape. The success stories of clients who have utilized the accelerator highlight the benefits of embracing ETFs as a way to attract and retain investors. In today’s market, offering ETF products is not only a strategic decision but also a necessary step towards meeting the needs of modern investors.
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