Goldman Sach Raises ETF Stakes With Major Acquisition

Editorial Staff

2 December 2025

has agreed to buy exchange-traded fund business, Innovator Capital Management, for a consideration of about $2 billion.

The sum paid will be in a mix of cash and equities, dependent on achieving certain performance targets, US-listed Goldman Sachs said yesterday. It said it expects the transaction to be closed in the second quarter of next year, subject to certain regulatory approval and customary closing conditions.

Innovator manages $28 billion of assets under supervision across 159 “defined outcome” ETFs as of 30 September, with capabilities to drive outcomes for clients across income, targeted buffer, and growth strategies.

The deal comes at a time when the ETF sector has already grown significantly in recent years. This is because ETFs are able to track indices and give market exposure at low cost; they have also become more varied with different strategies across asset classes. In total, ETFs hold a total of $19.21 trillion of assets as at the end of October (source: ETFGI).

Goldman Sachs said in a statement that the deal will “significantly expand” its asset management lineup of ETFs. The US firm said this acquisition will make Goldman Sachs Asset Management a top-10 active ETF provider.

“By acquiring Innovator, Goldman Sachs will expand access to modern, world-class investment products for investor portfolios,” David Solomon, chairman and chief executive of Goldman Sachs, said.

The group is leaning into the active ETF model. Such ETFs are run with the purpose of outperforming a market benchmark rather than track it, as was traditionally the case.

Global active ETF assets under management are at $1.6 trillion, growing at a 47 per cent compound annual growth rate since 2020 as investors increasingly access public markets through the ETF wrapper. Defined outcome ETFs have expanded at a compound annual growth rate of 66 per cent since 2020. Outcome ETFs are strategies that are tailored so that investors achieve a specific target, such as limiting downside loss. They typically achieve such targets by use of derivatives.

Personnel
Innovator’s Bruce Bond, co-founder and CEO; John Southard, co-founder and president; Graham Day, executive vice president and chief investment officer; and Trevor Terrell, senior vice president and head of distribution, will join Goldman Sachs Asset Management.

Goldman Sachs said it expects that Innovator’s team of more than 60 employees will join the Goldman Sachs Asset Management Third-Party Wealth and ETF teams. The business will be wholly owned under Goldman Sachs Asset Management and the investment management, and service providers will remain unchanged, it said.

Goldman Sachs was advised by Goldman Sachs Global Banking and Markets as financial advisor and Wachtell, Lipton, Rosen & Katz and Willkie Farr & Gallagher as legal counsel. Innovator was advised by Oppenheimer & Co, as financial advisor and Vedder Price as legal counsel.