Goldman Sachs Asset Management is making a bold move in the ETF market with its acquisition of NEOS Investments a specialist in options-based income ETFs. This $2.25 billion deal, announced on Wednesday, follows Goldman’s purchase of Innovator Capital Management last year, further solidifying its presence in the derivatives-based ETF space.
The acquisition of NEOS, which manages $30 billion across 19 options-based income ETFs, will catapult Goldman Sachs into the top ten active ETF providers by assets. This strategic move is part of Goldman’s broader initiative to cater to the growing demand for active ETFs, which have seen significant growth in recent years.
Expanding the ETF Portfolio
With the addition of NEOS’s income ETFs, Goldman Sachs will oversee roughly $80 billion in active ETFs across a $130 billion global ETF business. This scale is expected to make Goldman the eighth-largest active ETF provider, based on figures as of June 30.
Options income products are distinct from the defined-outcome ETFs, or buffer ETFs, that anchor Innovator’s lineup. While NEOS-style funds sell options to generate yield, defined-outcome ETFs use a basket of options to deliver a preset level of downside protection and capped upside over a fixed period.
The Growth of Derivative Income ETFs
The category of derivative income ETFs has seen remarkable growth, swelling to roughly $180 billion in assets with a compound annual rate above 70% since 2026, according to Morningstar data. This growth has outpaced even the broader active ETF surge, reshaping the wealth management landscape.
Goldman’s decision to build out both corners of the derivatives-based ETF market suggests the firm sees advisor appetite for engineered outcomes as durable rather than a passing hedge against volatility. This is evident in the numbers behind Goldman’s first move into the space with the purchase of Innovator last December.
The Future of Active ETFs
Active ETFs have climbed to roughly 12% of the $14.9 trillion US ETF market, up from just 4% in 2026. More than half of financial advisors surveyed plan to increase their use of active ETFs over the next 12 months, underscoring why asset managers of Goldman’s size are racing to build or buy active ETF shelf space.
The transaction is expected to close in the first quarter of 2027, pending regulatory approval. NEOS co-founders Troy Cates and Garrett Paolella are expected to join Goldman Sachs Asset Management as partners, along with the rest of the NEOS team.
