Goldman Sachs Buys ETF Sponsor Innovator in $2 Billion Deal

Goldman Sachs revealed on Monday that it is set to acquire Innovator Capital Management, a leading name in the active exchange-traded fund space, through a cash-and-stock agreement valued at roughly $2 billion. The transaction marks a strategic step for the Wall Street powerhouse as it aims to deepen its presence in one of the asset management industry’s fastest-expanding categories.

Rising Preference for Active Investment Strategies

In recent years, active investment approaches have surged back into focus. Investors, faced with lower returns from traditional passive index-based products during periods of tighter monetary policy, have increasingly gravitated toward strategies that rely on active decision-making. This shift has revitalized demand for actively managed solutions.

According to Goldman Sachs, referencing Morningstar data, actively managed ETFs now hold about $1.6 trillion in global assets. Notably, the segment has grown at a compound annual rate of 47% since 2020, underscoring its rapid expansion and the heightened interest from institutional and retail investors alike.

"Active ETFs are dynamic, transformative, and have been one of the fastest-growing segments in today's public investment landscape," said Goldman Sachs CEO David Solomon.

Industry Peers Also Expanding Their Active ETF Footprint

The momentum in this category is not limited to Goldman Sachs. Earlier this year, J.P. Morgan Asset Management introduced its most significant active ETF to date, supported by a $2 billion commitment from an external investor. The move highlights how major asset managers are racing to build scale in this space.

As of September 30, 2025, Innovator Capital Management was overseeing $28 billion in assets across 159 defined outcome ETFs. The firm has carved out a niche by offering income-focused, buffer-oriented, and growth-driven strategies, establishing itself as a standout player in the actively managed ETF landscape.

Leadership Transition to Goldman Sachs

Under the terms of the acquisition, Innovator’s Co-founder and CEO Bruce Bond, along with other senior leaders, will transition to roles within Goldman Sachs Asset Management. Additionally, around 60 Innovator employees are set to join Goldman Sachs’ Third-Party Wealth and ETF divisions, further strengthening its operational capabilities.

Deal Timeline and Advisory Roles

The acquisition is slated for completion in the second quarter of 2026. Goldman Sachs Global Banking and Markets served as the financial adviser to Goldman Sachs, while Oppenheimer & Co provided advisory services to Innovator Capital Management throughout the negotiation process.