Goldman Sachs to Acquire Innovator ETFs in $2 Billion Deal, Boosting Active ETF Assets to Over $75 Billion

Goldman Sachs has announced its agreement to acquire Innovator Capital Management, a prominent issuer of defined outcome Exchange Traded Funds (ETFs), for approximately $2 billion. This strategic move is set to significantly expand Goldman Sachs Asset Management's presence in the rapidly growing active ETF market, adding $28 billion in assets under supervision (AUS) and 159 ETFs to its portfolio. The transaction, payable in a combination of cash and equity and subject to performance targets, is expected to finalize in the second quarter of 2026, pending regulatory approvals.

Innovator Capital Management, often referred to as the "Buffer ETF people," manages $28 billion in AUS across its defined outcome ETF solutions as of September 30, 2025. These products are known for their fee structure, with one industry observer noting they "all charge like 80bps = revenue machines," a valuable characteristic in the current market environment. The acquisition positions Goldman Sachs to capitalize on the increasing demand for active ETFs, which have seen substantial growth.

David Solomon, Chairman and CEO of Goldman Sachs, emphasized the strategic importance of the deal. "Active ETFs are dynamic, transformative, and have been one of the fastest-growing segments in today's public investment landscape," Solomon stated, adding that the acquisition will "expand access to modern, world-class investment products for investor portfolios." This aligns with Goldman's broader strategy to enhance its asset management division and build more durable revenue streams.

The acquisition will see Innovator's co-founder and CEO, Bruce Bond, along with other key executives and over 60 employees, join Goldman Sachs Asset Management. Bruce Bond commented on the milestone, stating, "Goldman Sachs has a long history of discerning emerging trends and important directional shifts within the asset management industry." He expressed excitement about expanding their business in this high-growth category.

With this acquisition, Goldman Sachs Asset Management and Innovator will collectively manage more than 215 ETF strategies globally, representing over $75 billion in total AUS. This solidifies Goldman Sachs' position as a top ten active ETF provider. Bryon Lake, Goldman Sachs Asset Management partner and chief transformation officer, explained the rationale, highlighting Innovator's pioneering role in the defined outcome ETF space and their client-obsessed culture.