Goldman Sachs to acquire ETF provider Neos for $2.3 billion in asset management push

Goldman Sachs is making another big bet on the booming ETF market. The Wall Street giant has agreed to acquire Neos Investments for up to $2.25 billion, a deal that will push its active ETF assets to roughly $80 billion and deepen its move into one of asset management’s fastest-growing corners.

The cash-and-equity transaction gives Goldman control of a young ETF manager that has grown at an unusual clip. Neos managed about $30 billion across 19 funds as of June 30, with much of its business centered on systematic options-based income strategies.

“Goldman Sachs Group Inc. will pay as much as $2.25 billion to buy Neos Investments, expanding its asset manager’s reach in the actively managed exchange-traded fund market,” Bloomberg reported.

The price tells part of the story. Goldman isn’t buying a traditional asset manager with decades of history. It is paying billions for a firm that has captured investor demand for ETFs that seek to generate income through options strategies.

That demand has grown as investors look for ways to generate income and soften portfolio drawdowns during periods of market volatility. Active ETFs can carry higher fees than passive funds tracking indexes, making them an attractive business for large asset managers searching for new sources of recurring fee revenue.

Goldman Sachs is building a much bigger active ETF business

The Neos acquisition is the latest sign that Goldman sees active ETFs as a major growth business rather than a niche product category.

Goldman recently completed its acquisition of Innovator Capital Management, another ETF provider known for options-based strategies. That transaction, valued at roughly $2 billion, brought about $28 billion in assets under supervision when it was announced. Adding Neos would give Goldman considerably more scale and place it among the eight largest active ETF providers, according to the Financial Times.

The back-to-back acquisitions reveal a clear strategy. Goldman can build funds internally, but buying established ETF platforms gives the bank assets, products, distribution and investor relationships in one transaction.

Neos brings another piece: momentum.

Its lineup focuses heavily on options-based income products, an area that has attracted investors seeking cash flow without abandoning equity exposure. These strategies use derivatives to generate income and can offer a different return profile from conventional stock and bond portfolios. They still carry investment risks, including the possibility that investors sacrifice some upside during strong market rallies.

For Goldman, the deal fits a broader effort to grow asset and wealth management businesses that can produce recurring fees. Investment banking and trading remain central to the firm, but their results can swing sharply with deal activity and financial markets. Asset management offers a steadier stream of revenue tied to money managed for clients.

Goldman CEO David Solomon called Neos an “excellent strategic and cultural fit,” pointing to the firm’s presence across a diverse investor base.

“As investor demand for active ETFs grows, NEOS’ disciplined investment approach is highly complementary to our capabilities across buffer, managed outcome and income strategies. Together, we will give investors a diverse toolkit for different market environments,” said David Solomon, Chairman and CEO of Goldman Sachs. “NEOS’ innovative ETF solutions and intuitive financial education programs have helped them build a strong market presence across a diverse investor base and this acquisition is an excellent strategic and cultural fit.”

The transaction is expected to close in the first quarter of 2027, subject to customary closing conditions. Once completed, Goldman expects its active ETF assets to reach about $80 billion, Reuters reported.

The bigger takeaway is what Goldman is willing to pay to get there. After spending billions on Innovator and now as much as $2.25 billion on Neos, the bank is signaling that the battle for ETF assets is moving beyond low-cost index funds.

The next prize is active ETFs, and Goldman is buying its way into the front ranks.