Goldman Sachs to buy ETF sponsor Innovator in $2 billion cash-and-stock deal as the Wall Street bank seeks to expand in one of the fastest-growing asset management segments. Active funds have regained lost ground in the last few years as investors favor a more hands-on approach following lower returns from passively managed index products amid tighter monetary policy.

Goldman Sachs has agreed to acquire Innovator Capital Management, a specialist exchange-traded fund (ETF) sponsor best known for its defined-outcome ETFs, in a roughly $2 billion cash‑and‑stock transaction. Innovator, based in Wheaton, Illinois, manages about $28–31 billion across more than 150–160 ETFs, primarily structured to buffer downside risk in exchange for capped upside, and its employees and leadership team are expected to join Goldman Sachs Asset Management (GSAM) after closing. The deal, subject to regulatory approvals and performance-related price adjustments, is expected to close in the second quarter of 2026. For Goldman Sachs, the acquisition is a strategic move to rapidly expand its presence in one of the fastest-growing segments of asset management: active and structured ETFs, including defined-outcome products that have gained traction among financial advisers in a higher‑rate, more volatile market environment. The transaction is set to increase Goldman’s ETF assets under management from about $51 billion to roughly $79 billion, pushing the firm into the ranks of the top 10 active ETF issuers and giving it more than 215 ETF strategies and over $75 billion in ETF assets globally when combined with Innovator’s lineup. For the broader industry, the deal underscores how large banks are using M&A to capture flows into active and outcome-oriented ETFs, as investors seek more tailored risk management and return profiles after a period of weaker performance from traditional passive index funds amid tighter monetary policy.

✨ AI-generated background, compiled from web sources — not editorial content.

More coverage

• Goldman Sachs Buys Innovator Capital for $2B - Wealth Management (wealthmanagement.com)
• Goldman to buy Innovator Capital Management for $2B | Banking Dive (bankingdive.com)
• Goldman Sachs Completes Acquisition of Innovator Capital ... (goldmansachs.com)

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