In 2023, we have seen many ETF providers expand their active ETF lineup with some new products forthcoming. However, we think there are many more to come. On Friday, with the help of the Goldman Sachs ETF Accelerator business, Eagle Capital threw its hat into ETF the ring. They filed for a concentrated actively managed equity ETF.
What’s Likely Inside EAGL
The Eagle Capital Select Equity ETF will be the firm’s first ETF. It is likely to begin trading under the ticker EAGL in the second half of 2023. According to the filing, the fund will be actively managed and fully transparent. It will generally consist of 15-35 of the firm’s best investment opportunities at any time. Management plans to own U.S. common stocks as well as international securities through ADRs and GDRs. And the securities will be chosen with a long five-to-seven-year holding period in mind.
Eagle Capital Management, which will be EAGL’s advisor, manages a single U.S. public equity strategy with over $20 billion in assets under management. Founded in 1988, they have a nearly 35-year record of value investing. The firm is also employee-owned. To enter the ETF market, they are working with the Goldman Sachs ETF Accelerator, which is listed in the filing as a consultant to the fund advisor. The filing adds that Goldman Sachs ETF consulting services assist advisors with ETF formation and ongoing operations.
Goldman Sachs Has ETF Experience to Help Others
Goldman Sachs has been involved in the ETF space for decades across different segments and parts of the firm. The company’s asset management arm offers its own ETFs, run by a different team, and plans to launch new products that are separate from the aforementioned filing.
Formed in late 2022, Goldman Sachs ETF Accelerator brings together the expertise, infrastructure, and risk management frameworks the company offers. The firm is a large liquidity provider, authorized participant, and has a broad array of institutional relationships with asset managers.
Friends Like Goldman Sachs Can Get You to the ETF Market Faster and Smarter
This should allow the financial service company’s clients to list, launch, and manage their own ETFs. And likely to do it faster and more efficiently than they could do it on their own. Lisa Mantil and Steve Sachs are part of the Goldman Sachs ETF Accelerator leadership team.
While EAGL might be the first to tap into Goldman’s ETF expertise, we are confident it will not be the last institutional manager to use Goldman Sachs Accelerator business as a consultant. The ETF market is rapidly growing, and we know more institutional investors will want to meet advisors and end clients where they are putting money to work. But going it alone is a challenge. Just like anyone joining a party 30 years after it started, it helps to have a friend to introduce you around.
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