Goldman Sachs has entered a deal to acquire Innovator Capital Management for approximately $2 billion. The acquisition comes as Goldman seeks to expand its asset-management business and strengthen its position in the rapidly growing active exchange-traded fund (ETF) market.

What Innovator Brings to Goldman

Innovator manages about $28 billion in assets across 159 “defined-outcome” ETFs. These funds offer structured strategies, using options and derivatives, that aim to provide downside protection or targeted returns, giving investors a more controlled risk profile.

Once the deal closes, Goldman Sachs Asset Management will add these offerings to its lineup. The combined entity will reportedly manage more than 215 ETF strategies with over $75 billion in assets under supervision, making Goldman one of the top active ETF providers globally.

Industry Context: Why Active ETFs Matter

Active ETFs, especially defined-outcome ones, have gained popularity as investors seek more control and protection amid volatile markets. Globally, assets in active ETFs have grown significantly, attracting attention from large financial players like Goldman. The acquisition reflects this trend toward more customizable, risk-managed investment products.

What This Means for Investors and the Market

For retail and institutional investors, the deal may lead to broader access to structured, risk-aware ETF products under a major global investment house. For Goldman, it marks a strategic pivot away from traditional banking services and toward asset management as a core growth engine. Among broader implications: ETFs may continue to evolve, offering more tailored solutions for different risk appetites and financial goals.