By Suzanne McGee, Saeed Azhar and Manya Saini

(Reuters) – Goldman Sachs is exploring choices, together with a possible sale, of its ETF Accelerator platform which helps the financial institution’s institutional shoppers launch their very own exchange-traded funds, two sources aware of the matter instructed Reuters on Friday.

The platform is separate from the ETF enterprise of Goldman Sachs’ asset administration arm, the supply stated, who didn’t wish to be recognized as a result of the plans aren’t public. A second supply instructed Reuters that he had seen an inside e mail confirming particulars of the doable sale.

The memo did not present a purpose for the doable sale. If Goldman sells or shutters the ETF accelerator, it will not have an effect on the agency’s personal ETF merchandise, that are a part of Goldman Sachs Asset Administration.

“We’re assessing what the perfect long-term choice is for the ETF Accelerator platform for Goldman Sachs and our shoppers,” stated Nick Carcaterra, a spokesperson for the financial institution, in an emailed assertion. 

“No resolution has been made and there are not any imminent plans for a change. If we now have an replace to share, we’ll accomplish that,” he added.  

The information was first reported by Bloomberg Information. 

Goldman launched the ETF Accelerator in 2023 and oversaw the rollout of the primary ETFs for shopper Brandes Funding Companions in October. Thus far, it has dealt with the launch of 10 ETFs for 4 shoppers, together with the debut of the primary ETF issued by GMO, the funding agency based by Jeremy Grantham.

That compares to the report 600 ETFs the trade rolled out in 2024 as of late November, in line with State Avenue (NYSE:) World Advisors. Roughly a dozen merchandise had been launched this week alone, in line with a Reuters tally.

“Perhaps they miscalculated the place the demand for his or her companies may come from,” stated Bryan Armour, ETF analyst at Morningstar, noting that different companies offering related options, like Tidal Monetary Group and Alpha Architect, have been “very profitable.”

Talking to Reuters on the time of the GMO ETF launch, Lisa Mantil, world head of the ETF Accelerator, stated that whereas regulatory adjustments had made it simpler for managers to launch ETFs, companies might nonetheless profit from Goldman’s “expertise and experience.” (This story has been refiled to vary the phrase ‘memo’ to ‘e mail’ in paragraph 2)