Goldman Sachs expands active ETF platform through Innovator acquisition

The Goldman Sachs Group, Inc. (Goldman Sachs) has acquired Innovator Capital Management, LLC (Innovator), the pioneer and industry leader in defined outcome exchange-traded funds (ETFs), to strengthen its position in the fast-growing defined outcome ETF segment.

The closing of this transaction marks a significant milestone for the growth of Goldman Sachs Asset Management’s ETF business and enhances the firm’s offerings in one of the fastest-growing active ETF categories.

By integrating Innovator’s approximately $31 billion in assets under supervision (AUS) across its suite of 171 ETFs focused on defined outcome strategies, Goldman Sachs Asset Management now manages approximately 240 ETFs globally. With total ETF AUS of $90 billion, Goldman Sachs Asset Management is a top 10 global active ETF provider.

“With this acquisition, we have taken a transformative step in our commitment to provide sophisticated investment solutions that are designed to deliver specific outcomes for investors through market cycles,” said David Solomon, chairman and CEO of Goldman Sachs. “Integrating Innovator’s specialised defined outcome ETF capabilities expands our range of strategies that can be accessible for a broad range of investors, while enhancing our leadership in the active ETF category.”

The acquisition adds Innovator’s specialised expertise in defined outcome ETFs, which use options-based strategies to support investors seeking income, targeted risk profiles, and growth opportunities.

Innovator’s Bruce Bond, co-founder and CEO, and John Southard, co-founder and president join Goldman Sachs as advisory directors to support the continued growth of the defined outcome suite. Graham Day, chief investment officer; and Trevor Terrell, head of distribution, join Goldman Sachs as partners.

Innovator’s more than 70 employees join Goldman Sachs, and the firm is retaining investment management and service providers for the existing Innovator ETF lineup to ensure a seamless transition for fund shareholders.

Re-disseminated by Wealth and Society