Goldman Sachs Acquires NEOS Investments to Bolster Options-Based ETF Franchise

The banking industry is shifting towards active ETFs and options-based income products as investors seek higher returns, tax efficiency, and downside-risk management. Derivative-income ETFs have grown to $180 billion in assets since 2021, with a CAGR of over 70%. The Goldman Sachs Group has agreed to acquire NEOS Investments for up to $2.25 billion in cash and equity.

The acquisition will add $30 billion in assets from NEOS' 19 options-based income ETFs to Goldman's existing $40 billion in income and outcome-oriented options-based ETF solutions. This deal will make Goldman Sachs Asset Management the eighth-largest active ETF provider, with a broad options-based ETF franchise spanning buffer, managed outcome, and income strategies.

Goldman's push into options-based ETFs is likely to enhance its competitive advantage by giving the firm greater scale, a broader range of differentiated products, and stronger exposure to fast-growing active ETF categories. The addition of NEOS alongside Innovator strengthens Goldman's presence across income, buffer, and managed-outcome strategies.

Goldman Sachs' peers, including Morgan Stanley and JPMorgan, are also expanding their crypto-related capabilities, with Morgan Stanley filing for ETFs linked to Bitcoin and Solana. Meanwhile, Goldman shares have jumped 38.8% in the past year compared to the industry's growth of 26.3%, with a forward P/E ratio of 14.61X.