In a strategic move to bolster its presence in the fast-growing asset management sector, Goldman Sachs announced on Monday it will acquire Innovator Capital Management, an active exchange-traded fund (ETF) sponsor, in a cash-and-stock deal valued at approximately $2 billion. This acquisition reflects a growing trend among investors who are increasingly favoring actively managed funds. Following a period of lower returns from passive index products, there has been a notable resurgence in active funds, signaling a shift towards more hands-on investment strategies amid tighter monetary policies.
According to Goldman Sachs, global assets invested in actively managed exchange-traded funds have surged to $1.6 trillion, demonstrating a remarkable 47% compound annual growth rate since 2020, as reported by data from Morningstar. Goldman Sachs CEO David Solomon emphasized the transformative nature of active ETFs, highlighting them as one of the fastest-growing segments in today’s investment landscape.
Innovator Capital Management was managing $28 billion in assets across 159 defined outcome ETFs as of September 30, with offerings that center around income, buffer, and growth strategies. This positioning aligns well with the increasing investor interest in funds that provide defined outcomes in uncertain market conditions.
As part of this acquisition, Innovator co-founder and CEO Bruce Bond, along with other key executives, will transition to Goldman Sachs Asset Management. Additionally, around 60 employees from Innovator are expected to join the Goldman Sachs Asset Management Third-Party Wealth and ETF teams, further integrating Innovator’s expertise with Goldman’s resources.
Recent market developments also include JPMorgan Asset Management’s rollout of its largest active exchange-traded fund earlier this year, buoyed by a significant $2 billion commitment from an external client, underscoring the competitive landscape in the active ETF sector.
The completion of Goldman Sachs’ deal with Innovator is anticipated in the second quarter of 2026. Financial advisory roles for this agreement were filled by Goldman Sachs Global Banking and Markets and Oppenheimer & Co, further illustrating the collaborative effort within the financial sector to expand market offerings amidst evolving investment preferences.
