Goldman Sachs Doubles Down on Options-Based ETFs with NEOS Deal

Goldman Sachs has made its second big move into options-based ETFs in under a year. The bank agreed to acquire NEOS Investments, which manages $32.4 billion across 19 US-listed ETFs. This deal is worth up to $2.25 billion in cash and equity.

NEOS's two flagship funds, the Nasdaq-100 High Income ETF (QQQI) and the S&P 500 High Income ETF (SPYI), hold $13.9 billion and $11.4 billion respectively, accounting for over three-quarters of the firm's assets. These funds use index options to generate high monthly payouts.

Goldman is paying roughly 10 times revenue for the business, which throws off an estimated $220 million in annual revenue. This reflects how quickly both the category and NEOS have grown since launching its flagship suite in 2022.