Goldman Sachs ETF faces delisting risk on NYSE Arca

Published 12/08/2024, 23:16
Goldman Sachs ETF faces delisting risk on NYSE Arca

Goldman Sachs ETF Trust II has been notified by NYSE Arca, Inc. that its MarketBeta Total International Equity ETF (NYSE Arca:GXUS) does not meet the exchange's continued listing standard requiring at least 50 beneficial holders, as per an 8-K filing with the SEC. The ETF, which debuted on June 7, 2023, had fewer than 50 beneficial holders as of August 2, 2024.

The Trust must now submit a plan to NYSE Arca detailing how it will increase the Fund's shareholder count and regain compliance. If accepted, NYSE Arca will grant a "cure period" during which the Fund must demonstrate it has maintained the minimum required shareholders for two consecutive months. Failure to do so by the end of the cure period could result in delisting.

InvestingPro Insights

Amid the notification of non-compliance from NYSE Arca, Goldman Sachs ETF Trust II's MarketBeta Total International Equity ETF (GXUS) presents a mixed performance in recent months. The fund has experienced a short-term gain with a 1-week price total return of 3.4%, suggesting a recent uptick in investor interest. However, looking at a broader timeframe, the 1-month price total return shows a decline of -4.76%, reflecting some volatility or investor uncertainty in the near term. Over the last six months, the fund has managed to achieve a positive return of 4.7%, and it maintains a year-to-date price total return of 4.53%, which could indicate underlying resilience in its investment strategy.

The average daily volume over the past three months has been notably low, which may be a contributing factor to the fund's challenge in meeting the NYSE Arca's requirement for the number of beneficial holders. Despite this, the 1-year price total return stands at 8.48%, revealing that investors who have held onto their shares for a longer period have seen favorable results.

For those considering the potential of GXUS, the current price stands at 44.25 USD, providing a reference point for the fund's value as of the previous close. Investors looking for more detailed analysis and additional metrics to evaluate the fund's performance can find a broader range of InvestingPro Tips. There are over 15 additional tips available on InvestingPro, offering deeper insights to help investors make informed decisions.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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