Goldman Sachs Buys ETF Provider Neos for $2.3 Billion
Goldman Sachs is expanding its asset management business through a $2.3 billion deal to acquire Neos Investments, an ETF provider known for its options-based income funds.
The acquisition will add nearly two dozen actively managed exchange-traded funds (ETFs) to Goldman's roster, commanding some $32 billion in assets and offering complex strategies to a broader segment of investors.
Neos' flagship options-based funds have provided lucrative double-digit returns with monthly payouts, utilizing favorable tax treatment to boost after-tax returns.
The deal is the latest move by Goldman to push into the ETF universe, following its $2 billion purchase of Innovator Capital Management last year. With the Neos acquisition, Goldman's ETF assets will reach about $130 billion.