Goldman Sachs is the latest major financial name to express serious interest in getting involved in the growing exchange traded fund (ETF) market. It’s competitive out there, though. Do they have what it takes?
The ETF business has been growing at an impressive rate, with nearly 850 funds holding close to $800 billion in assets under management. As a result, heavyweights are increasingly making moves to play in the space.
Ian Salisbury for The Wall Street Journal reports that the provider filed with the Securities and Exchange Commission (SEC) on Christmas Eve for permission to launch a slate of ETFs. [Read about the filing here.]
The Goldman name carries a lot of weight. But the big question is: Are they late to the game? The last year has seen several huge names either file or launch ETFs of their own:
- Charles Schwab launched a slate of ETFs last year that are commission-free when traded at Schwab. [Charles Schwab is also entering into the ETF industry.]
- PIMCO has launched a line of bond funds, extending their expertise in that area to the ETF industry. [More on PIMCO.]
- T. Rowe Price recently filed for actively managed ETFs. [More on that filing here.]
Goldman’s filing hints it may focus its attention on index ETFs rather than newer actively managed funds. [Another name in the ETF business.]
Goldman already plays a role in the ETF business. They have an ETF trading desk where investors are assisted in making large trades and converting ETF shares into stock and vice versa. Goldman also has at least two exchange traded notes (ETNs), which together hold about $100 million in assets. [The difference between ETFs and ETNs.]
For more stories about new ETFs, visit our new ETFs category. For more of ETF Trends in the press, visit the subsequent category.
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.