Goldman Sachs to Acquire NEOS Investments in Deal Worth Up to $2.25B, Expanding Options-Based ETF Lineup
ETF.com StaffWed, August 12, 2026 at 9:35 PM GMT+3 5 min read
Goldman Sachs Group Inc. (NYSE: GS) has agreed to acquire NEOS Investments, the fast-growing issuer of options-based income exchange-traded funds, in a deal valued at up to $2.25 billion in cash and equity, the firms announced Wednesday.
The acquisition adds $30 billion in assets across NEOS' 19 options-based income ETFs to Goldman Sachs Asset Management's existing $40 billion in income and outcome-oriented options-based ETF solutions. Once complete, the deal will make Goldman Sachs Asset Management the eighth-largest active ETF provider, with $80 billion in active ETFs across a $130 billion global ETF platform as of June 30, 2026, according to Morningstar data cited in the announcement.
The transaction is expected to close in the first quarter of 2027, subject to regulatory approval and other customary closing conditions.
A Bet on Booming Derivative Income ETFs
The deal underscores how quickly derivative income ETFs have moved from niche to mainstream. Industrywide, the category has swelled to approximately $180 billion in assets under management, growing at a compound annual rate of more than 70% since 2021, according to Morningstar. Investors have flocked to the strategies for their monthly income potential, tax efficiency and ability to manage risk amid interest rate volatility—all inside the transparent ETF wrapper.
Founded in 2022 by Garrett Paolella and Troy Cates, NEOS has been one of the market leaders in the derivative income category since launching its flagship options-based income ETF suite that year. The firm's data-driven ETFs aim to deliver high monthly income, tax efficiency and diversification.
"As investor demand for active ETFs grows, NEOS' disciplined investment approach is highly complementary to our capabilities across buffer, managed outcome and income strategies," said David Solomon, chairman and CEO of Goldman Sachs, in the press release. "Together, we will give investors a diverse toolkit for different market environments."
Second Options-Based ETF Deal for Goldman
The NEOS purchase follows Goldman's acquisition of Innovator Capital Management, and together the deals create a broad options-based ETF franchise spanning buffer, managed outcome and income strategies. As of June 30, 2026, Goldman Sachs Asset Management, Innovator from Goldman Sachs Asset Management and NEOS manage more than $130 billion in ETF assets under supervision.
NEOS co-founders and managing partners Paolella and Cates will join Goldman Sachs Asset Management as partners upon closing, and the full NEOS team—including founders, investors and client service staff—is expected to come aboard. Goldman said the partnership will give NEOS the scale and resources to strengthen its brand and expand into new markets while preserving the firm's distinct investment philosophy.
"As we think about the next chapter for our business, Goldman Sachs Asset Management is a partner that shares our commitment to investment excellence and innovation," Cates said. "Together, we'll combine NEOS' entrepreneurial spirit with Goldman Sachs' scale, expertise and resources to expand the reach of NEOS' solutions and deliver even greater value for our investors."
Paolella said the firm's vision since its founding has been to "meet investors where they are" and develop innovative solutions aimed at better outcomes, adding that every investor's income needs, risk tolerances and objectives are unique.
Deal Terms and Advisors
The transaction consideration of up to $2.25 billion in cash and equity is subject to the achievement of certain performance and/or service commitments. NEOS' shareholder base includes Aretex Capital and investor Tom Lydon.
Goldman Sachs Global Banking & Markets served as financial advisor to Goldman Sachs, with Wachtell, Lipton, Rosen & Katz and Willkie Farr & Gallagher LLP as legal counsel. Barclays is serving as exclusive financial advisor to NEOS, with Ropes & Gray LLP as legal counsel.
Goldman Sachs Asset Management oversees approximately $4 trillion in assets under supervision as of June 30, 2026, offering direct indexing, separately managed accounts, active ETFs and alternative strategies.
Source: Goldman Sachs press release, Aug. 12, 2026
This article was generated with the assistance of artificial intelligence and reviewed by ETF.com staff.
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