Goldman Sachs is pioneering a significant change in the $10 trillion exchange-traded fund (ETF) industry with its innovative third-party fund platform. The platform has ushered in a new era by enabling smaller issuers, like Brandes Investment Partners, to penetrate the market. This development, mirroring "white label" services in Europe and the US, signifies a turning point in the industry.
On Thursday, the platform successfully listed three versatile actively managed ETFs on the Cboe exchange. These ETFs span across US Small Cap Value, US Value, and International equities, providing a diverse range of investment options. The listing marks a significant milestone for Goldman Sachs' platform as it continues to facilitate smaller fund managers and newcomers' access to the ETF market.
Among the listed ETFs, one that stands out is SPYV. According to InvestingPro data, SPYV has an adjusted market cap of $15.8 billion and a P/E ratio of 6.24. It has shown a positive revenue growth, with a quarterly growth of 5.99% in FY2023.Q4 and a yearly growth of 9.19% in LTM2023.Q4. The ETF has also been profitable over the last twelve months, with a basic EPS (Cont. Ops) of 6.61 USD.
InvestingPro Tips for SPYV reveal that the stock generally trades with low price volatility and has maintained dividend payments for 24 consecutive years. The ETF also has a strong financial position as its liquid assets exceed short-term obligations. For investors seeking stability and consistent returns, SPYV could be a viable option. More such tips can be found on InvestingPro.
The platform offers an efficient pathway for these issuers to launch their ETFs while optimizing resources. This cost-effective solution is reshaping the ETF industry by empowering smaller entities to compete in what has traditionally been a market dominated by larger institutions.
This development is an unprecedented shift in the industry dynamics, paving the way for more diversity and competition within the ETF market. By providing a streamlined and efficient solution for new entrants, Goldman Sachs' third-party fund platform is setting a new standard for accessibility and inclusivity in the ETF industry. The success of ETFs like SPYV, as evidenced by InvestingPro data and tips, indicates the potential of this platform to revolutionize the ETF landscape.
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