Goldman Sachs buys options-ETF specialist NEOS Investments

Goldman Sachs is buying NEOS Investments, a specialist in systematic options-based income ETFs, in a deal that will add about $30 billion of assets to Goldman Sachs Asset Management’s ETF business, according to a Wednesday press release.

NEOS manages 19 options-based income ETFs and has been among the fastest-growing providers in the category since launching in 2022. The transaction is valued at up to $2.3 billion in cash and equity, subject to performance and service commitments, and is expected to close in the first quarter of 2027.

The deal will bring together NEOS, Innovator from Goldman Sachs Asset Management and Goldman’s existing ETF operations, creating a platform with more than $130 billion in ETF assets. The combined business will have about $80 billion in active ETFs and is on track to become the eighth-largest active ETF manager, according to Morningstar data.

Goldman said derivative income ETFs have grown rapidly as investors seek higher-income, tax-efficient strategies and tools for managing market and interest-rate risks. The category has reached about $180 billion in assets and recorded annualized growth of more than 70% since 2021.

NEOS co-founders Troy Cates and Garrett Paolella will join Goldman Sachs Asset Management as partners, while the entire NEOS team is expected to transition to Goldman. 

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