Goldman Sachs Asset Management announced on December 15 that it will liquidate its three Large‑Cap Buffer ETFs—GSLC‑1, GSLC‑2 and GSLC‑3—after board approval. The decision follows the firm’s acquisition of Innovator Capital Management, a leading provider of defined‑outcome ETFs, and is part of a broader strategy to streamline overlapping products.
Under the liquidation plan, the ETFs will not begin a new outcome period. Instead, they will start selling holdings and distributing assets to shareholders. Shareholders can continue to trade shares until the distribution date, after which they will receive a liquidating distribution in accordance with regulatory requirements.
The move is driven by the recent acquisition of Innovator. By removing legacy buffer products that overlap with Innovator’s offerings, GSAM can consolidate its product lineup and focus on higher‑margin active and defined‑outcome ETFs that are expected to generate stronger fee income.
While the announcement did not disclose the exact liquidation dates or the combined assets under management of the three ETFs, the decision signals a shift in GSAM’s ETF strategy. The firm’s focus on higher‑margin products aligns with its broader push into active and defined‑outcome ETFs, where it expects to capture a larger share of the growing market.
The liquidation will reduce GSAM’s fee‑generating product portfolio and slightly lower its overall assets under management. However, the company believes that the consolidation will improve operational efficiency and free capital for investment in its higher‑margin offerings, potentially offsetting the short‑term impact on fee income.
The announcement may influence investor sentiment toward GSAM’s ETF business, but the firm’s acquisition of Innovator and continued focus on defined‑outcome ETFs suggest a long‑term commitment to the space.
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