- Goldman Sachs adds $28B in assets and 159 funds with the Innovator Capital deal.
- Defined-outcome ETFs have grown at a 66% CAGR since 2020 as demand rises.
- Innovator staff, including founders, will join Goldman Sachs after the deal closes.
Goldman Sachs has sealed one of its biggest asset-management deals in recent years, announcing a definitive agreement to acquire Innovator Capital Management for roughly $2 billion in cash and equity. The transaction, expected to close in the second quarter of 2026, marks a sweeping expansion of Goldman’s ambitions in the fast-rising world of active and defined-outcome ETFs.
Goldman Sachs Expands ETF Footprint With $2B Innovator Deal (Source: X)
With Innovator bringing $28 billion in assets under supervision across 159 ETFs, the acquisition positions Goldman Sachs Asset Management (GSAM) as a larger force in the ETF market, specifically within the structurally innovative segment of “defined-outcome” products.
A Strategic Push Into One of the Fastest-Growing ETF Segments
Defined-outcome ETFs have surged in popularity as investors seek more control over risk and return. These funds use options-based strategies to build portfolios that target specific performance levels over preset periods, offering features such as downside buffers, yield enhancement, and structured return ranges.
According to Morningstar, the category has grown at a 66% compound annual growth rate (CAGR) since 2020, outpacing broader ETF industry growth. Global active ETF assets now total $1.6 trillion, having expanded at a 47% CAGR since 2020.
By acquiring Innovator, Goldman Sachs significantly accelerates its stake in this high-velocity niche. “Innovator’s reputation for innovation and leadership in defined outcome solutions complements our mission to enhance the client experience,” said Goldman CEO David Solomon, calling active ETFs “dynamic and transformative.”
The deal also adds immediate scale: combined, Goldman and Innovator now oversee more than 215 ETF strategies representing over $75 billion in total AUS.
Why Innovator? A Pioneer With a Rapidly Expanding Platform
Established leadership was a core driver of the acquisition. Innovator developed the first defined-outcome ETFs in 2018 and has since built one of the most comprehensive ranges of structured ETF products in the market.
Its founders, CEO Bruce Bond, President John Southard, CIO Graham Day, and Head of Distribution Trevor Terrell, will join Goldman Sachs Asset Management along with more than 60 employees. All existing investment and service-provider arrangements will remain intact under Goldman’s ownership.
Bond called the transaction “a pivotal milestone,” noting that Goldman’s distribution power and product ecosystem will help scale Innovator’s strategies to a broader global audience.
Goldman Sachs Builds Momentum After a Year of Asset-Management Deals
This acquisition continues Goldman Sachs’ renewed focus on asset and wealth management after the firm pulled back from consumer banking. It follows two industry-shaping moves earlier in the year:
- A $1 billion investment partnership with T. Rowe Price was announced in September.
- The acquisition of Industry Ventures, a major venture-capital investor, was announced in October.
With Innovator added to the mix, Goldman Sachs deepens its foothold in alternatives, ETFs, direct indexing, and customized client portfolios, areas the bank identified as core to its long-term growth.
The move also strengthens Goldman’s “durable revenue” strategy. Unlike investment banking fees, ETF revenues are recurring, stable, and scale with assets, an appealing feature during periods of market uncertainty.
A Deal That Could Reshape the ETF Landscape
The transaction consideration, approximately $2.0 billion, contingent on performance targets, reflects the accelerating competition among asset managers to secure innovative ETF capabilities.
If regulatory approval proceeds as expected, Goldman Sachs will emerge as a top-10 active ETF provider globally, armed with a much-expanded product roadmap across income, growth, and risk-managed strategies.
For investors, the acquisition signals the continued mainstreaming of structured ETF products as demand grows for accessible, tax-efficient tools that help navigate volatile markets.
As active ETFs continue to surge and structured solutions push deeper into the retail and advisory channels, Goldman’s acquisition marks a notable shift, one that aligns the bank squarely with the future trajectory of the ETF industry.
