Goldman Sachs to Acquire NEOS in $2.25 Billion ETF Expansion

The acquisition, structured as a mix of cash and equity, pushes Goldman’s total ETF assets beyond $130 billion. NEOS, which launched in 2022, specializes in systematic strategies that sell options to generate income, a segment that has seen explosive growth as investors seek to hedge market volatility and capture higher yields. Once the transaction is finalized, the firm’s co-founders, Troy Cates and Garrett Paolella, will join Goldman Sachs Asset Management as partners alongside their existing investment and operating teams.

This purchase marks a significant strategic pivot toward active management, where Goldman now holds a top-ten position. The move follows the bank's earlier acquisition of Innovator Capital Management, which provided a foothold in defined-outcome and buffer ETFs. By integrating NEOS, Goldman gains a comprehensive suite of income-focused products that complement its existing capabilities. CEO David Solomon noted that the firm’s disciplined approach aligns with the bank’s broader efforts to meet rising institutional and retail demand for actively managed derivative strategies.

While the deal is subject to regulatory approval, it signals Goldman’s intent to dominate the $180 billion derivative income ETF market. The bank is already exploring similar territory with its own filings for Bitcoin-linked premium income funds, suggesting that the expertise brought by NEOS personnel could influence future product development. For individual investors, the transition will not immediately alter the fee structures or objectives of existing NEOS funds, though it consolidates a significant portion of the options-income sector under a single global asset manager.