Goldman Sachs Asset Management L.P. announced Monday an agreement to acquire Innovator Capital Management LLC, an exchange-traded fund provider with $28 billion in assets under servicing. The $2 billion acquisition is expected to close in the second quarter of 2026, pending regulatory approval.
Innovator provides defined outcome ETFs, also known as buffer ETFs, which GSAM described as the fastest-growing active ETF category. According to GSAM, the acquisition would expand the manager’s ETF lineup and future product road map. Defined outcome ETFs utilize derivatives to achieve specific objectives, such as downside protection during volatile periods.
“Having grown at 66% compound annual growth rate since 2020, defined outcome ETFs are a key component of the rapidly growing active ETF market, driven by the objective to deliver innovative structured strategies in accessible formats,” GSAM stated. “Investors are increasingly using defined outcome ETFs to add a broad and customizable range of objectives to their portfolios that meet their risk control needs and performance objectives.”
As of September 30, GSAM oversaw more than $75 billion in assets across more than 215 ETF strategies. The acquisition of Innovator will add 159 defined outcome ETFs to GSAM’s lineup. Innovator’s six employees, including its executive leadership, will join Goldman Sachs following the closing of the acquisition.
“Active ETFs are dynamic, transformative and have been one of the fastest-growing segments in today’s public investment landscape,” said David Solomon, the Goldman Sachs Group Inc.’s chairman and CEO, in a statement. “By acquiring Innovator, Goldman Sachs will expand access to modern, world-class investment products for investor portfolios.”
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