Goldman Sachs Scoops Up Neos in $2.25 Billion ETF Play

Goldman Sachs is deepening its push into the fast-growing derivative income ETF market with a major acquisition. The bank will buy Neos Investments, a Connecticut-based ETF issuer that manages around $30 billion across 19 options-based income ETFs. This deal follows Goldman's purchase of Innovator Capital Management for $2 billion last year and will see Neos' co-founders join Goldman Sachs Asset Management as partners when the transaction closes.

The acquisition is valued at up to $2.25 billion, with a portion tied to asset retention and performance targets. This deal positions Goldman among the top eight active ETF providers, with around $80 billion in active ETF assets combined with its existing options-based ETF lineup.

Neos specializes in systematic options-based income strategies, writing index option overlays on equity, fixed income, and alternative exposures within a tax-efficient ETF structure. Its flagship funds include the S&P 500 High Income ETF (SPYI), the Nasdaq-100 High Income ETF (QQQI), and the Russell 2000 High Income ETF (IWMI).

The deal is expected to close in the first quarter of 2027, with Neos posting year-to-date inflows of around $13 billion. This growth has seen its four largest funds outperform industry levels, with QQQI up 143%, IWMI up 236%, BTCI (the bitcoin-linked fund) up 104%, and SPYI up 101% as of July 31.