Goldman Sachs Launches Autocallable ETF-Linked Notes with Potential High Rewards and Risks

Goldman Sachs Group Inc. has issued a new financial product through its subsidiary, GS Finance Corp. The offering involves $1,023,000 in Autocallable ETF-Linked Notes due 2031, guaranteed by The Goldman Sachs Group, Inc. These notes are unique because they do not bear traditional interest but instead link their returns to the performance of three specific ETFs: the First Trust Nasdaq Cybersecurity ETF, the VanEck Gold Miners ETF, and the State Street® SPDR® S&P® Biotech ETF.

The notes have a stated maturity date of October 7, 2031, but they may be automatically called on January 4, 2027. If called, investors will receive $1,132 for each $1,000 face amount of the notes. The call depends on whether the closing levels of the three ETFs meet or exceed 85% of their initial levels on the call observation date. The initial levels are set at $104.70 for the First Trust Nasdaq Cybersecurity ETF, $87.78 for the VanEck Gold Miners ETF, and $154.43 for the State Street® SPDR® S&P® Biotech ETF.

At maturity, the return on the notes is based on the performance of the worst-performing ETF. If all ETFs perform positively, investors will receive a return equal to 1.25 times the lesser performing ETF's return. If any ETF performs poorly but remains above 70% of its initial level, investors will receive the face amount. However, if any ETF falls below 70% of its initial level, investors could lose approximately 1.4286% of the face amount for every 1% decline below that threshold, potentially resulting in a total loss of investment.

The estimated value of the notes at the time of issuance is approximately $961 per $1,000 face amount, which is less than the original issue price. The notes are part of the Medium-Term Notes, Series F program and are fully guaranteed by The Goldman Sachs Group, Inc. The offering includes a structuring fee of up to 0.25% of the face amount and is subject to market conditions.