Goldman Sachs has agreed to acquire NEOS Investments for up to $2.25 billion, adding about $30 billion in assets and 19 options-based income ETFs to its asset management business.
Summary
- Goldman Sachs will pay up to $2.25 billion through a cash-and-equity transaction.
- NEOS managed about $30 billion across 19 ETFs as of June 30.
- The purchase will lift Goldman’s ETF platform above $130 billion in assets.
- NEOS co-founders will join Goldman Sachs Asset Management as partners after closing.
Goldman Sachs sets first-quarter 2027 closing target
Goldman Sachs said in an Aug. 12 announcement that the final payment will depend on performance and service commitments included in the acquisition agreement. The transaction is scheduled to close during the first quarter of 2027, subject to regulatory clearances and customary closing conditions.
Structured as a mix of cash and equity, the deal will bring NEOS’ investment products, staff, and client relationships into Goldman Sachs Asset Management. The bank did not provide a breakdown of the cash and stock portions or identify the regulators that must approve the purchase.
Based in Westport, Connecticut, NEOS has built a range of 19 systematic options-based income ETFs since its launch in 2022. Goldman placed the firm’s assets under management at approximately $30 billion as of June 30, while Bloomberg data cited by Reuters estimated that NEOS had reached about $32 billion.
Options-based income funds generally hold securities or index exposure while selling options contracts to collect premiums. The income can soften some losses or support regular distributions, although selling calls may limit how much of a strong market rally reaches shareholders.
NEOS applies such strategies across stock indexes, bonds, and other market exposures. Its products include funds tied to the S&P 500, Nasdaq-100, high-yield bonds, and U.S. Treasury securities, giving Goldman an established set of income-focused products rather than requiring the bank to build each strategy internally.
Reuters reported that the NEOS S&P 500 High Income ETF, one of the provider’s main funds, returned about 19% over the previous year and approximately 15% on an annualized basis since its launch. Any past performance, however, does not guarantee that investors will receive comparable returns in later periods.
NEOS deal takes Goldman Sachs ETF assets above $130B
Once completed, the purchase will take Goldman Sachs Asset Management’s total ETF assets beyond $130 billion, according to the bank. Approximately $80 billion of the combined amount will be held in actively managed ETFs.
Morningstar figures included in the announcement would place Goldman as the eighth-largest active ETF provider by assets as of June 30. Unlike passive funds, which normally follow an index, active ETFs allow portfolio managers or systematic rules to adjust holdings and derivatives positions according to the strategy described in the prospectus.
The NEOS transaction follows Goldman’s acquisition of Innovator Capital Management, a provider known for defined-outcome and buffer ETFs. Goldman agreed to pay about $2 billion for Innovator, which managed $28 billion across 159 ETFs when the purchase was announced in December 2025.
Innovator’s products use options to set defined ranges for gains and losses over specified periods. NEOS concentrates more heavily on recurring income, giving Goldman funds across income, buffer, and managed-outcome categories after both businesses are integrated.
Chairman and CEO David Solomon said NEOS had developed a strong position among different types of investors and described its investment process as complementary to Goldman’s existing capabilities.
“As investor demand for active ETFs grows, NEOS’ disciplined investment approach is highly complementary to our capabilities across buffer, managed outcome and income strategies.”
Co-founders Troy Cates and Garrett Paolella will become partners at Goldman Sachs Asset Management after the purchase closes. The remaining NEOS investment, client service, and operating teams are also expected to join Goldman, according to the transaction announcement.
Options-based income ETFs have reached $180B
Demand for derivative income ETFs has accelerated as investors use exchange-traded products to seek distributions and manage market exposure. Morningstar data cited by Goldman valued the category at about $180 billion, following annualized asset growth of more than 70% since 2021.
A covered-call strategy typically sells call options against an asset or related exposure. The option premiums generate income, but the fund may give up part of its potential gain when the underlying market rises beyond the calls’ strike prices.
Put options and option spreads can also be used to set buffers or predetermined outcomes. Performance depends on contract pricing, volatility, market direction, expenses, and the portion of the portfolio covered by the derivatives strategy.
Such trade-offs have also entered the U.S. crypto ETF market. In April, crypto.news reported Goldman’s filing for a Bitcoin Premium Income ETF that would seek current income while maintaining indirect exposure to Bitcoin.
According to the preliminary prospectus, the proposed Goldman fund may place at least 80% of its net assets in instruments providing Bitcoin exposure, mainly shares of U.S.-listed spot Bitcoin exchange-traded products. It would then sell call options against part of that exposure to collect premiums.
The filing shows how NEOS’ options experience could complement product areas Goldman was already pursuing before the acquisition, though neither company has said whether NEOS personnel will work on the proposed Bitcoin fund. Any such operational role would depend on Goldman’s decisions after closing and the terms of the relevant fund documents.
US investors gain more access to managed-income ETFs
For U.S. investors, the transaction will place more exchange-listed options strategies within one large asset manager. NEOS funds already trade on U.S. exchanges and remain accessible through ordinary brokerage accounts, subject to each platform’s product availability and investor requirements.
The acquisition itself does not change the objectives, fees, distribution policies, or tax treatment of individual NEOS funds. Any material changes would generally need to appear in updated prospectuses, shareholder communications, or regulatory filings.
Tax results can vary across income ETFs because option contracts, capital gains, return-of-capital distributions, and ordinary income may receive different treatment under U.S. rules. Investors must rely on each fund’s tax documents and their own circumstances rather than treating every monthly distribution as equivalent to interest or dividend income.
Competition in the category has also extended to cryptocurrency-linked products. As covered in June, BlackRock disclosed additional operating details for its Bitcoin income ETF, including options-clearing and custody arrangements involving Goldman Sachs, Coinbase Custody, and Anchorage Digital Bank.
BlackRock later listed its iShares Bitcoin Premium Income ETF on Nasdaq under the ticker BITA. A subsequent crypto.news analysis by BITA said the product targets a 15% to 25% annual yield by selling calls against part of its Bitcoin ETF exposure, while accepting a cap on some gains during strong Bitcoin rallies.
Outside the ETF platform, Goldman’s asset and wealth management division generated $4.6 billion in second-quarter revenue, up 20% from the same period in 2025, Reuters reported. The business oversaw approximately $4.04 trillion in assets at the end of June.
Goldman Sachs Global Banking & Markets is serving as the bank’s financial adviser on the NEOS transaction. Wachtell, Lipton, Rosen & Katz and Willkie Farr & Gallagher are providing legal advice to Goldman, while Barclays is acting as NEOS’ exclusive financial adviser and Ropes & Gray is serving as its legal counsel.
