Goldman Sachs Buys Innovator Capital for $2 Billion to Expand Its ETF Business

Goldman​‍​‌‍​‍‌​‍​‌‍​‍‌ Sachs has confirmed that it wants to purchase Innovator Capital Management with the latter being a leader in the “defined-outcome” exchange-traded funds (ETFs) category. The deal is estimated to be worth about $2 billion. The purchase represents a big step in Goldman’s plan to extend its reach in the active, risk-managed investing space.

According to the deal, Innovator manages close to $28 billion in assets from 159 different ETFs as of September 2025. After combining, the asset management division of Goldman will have the responsibility of more than 215 ETF strategies worldwide, covering income, buffer, and growth objectives.

Defined-outcome ETFs provide a risk management tool that is very well structured: they typically employ one or more derivatives or options to a fixed upside potential while at the same time limiting the maximum loss to a certain level for a predetermined time period. These ETFs have been widely accepted/adopted by advisors and institutions that are in search of more stable returns even in volatile market conditions.

For Goldman, this action is a dramatic one. The company intends to lessen its dependence on the traditional, at times volatile, investment bank and trading income. Instead, through asset management and wealth services, it desires to generate stable long-term revenue streams.
The agreement (deal) should be completed by the 2nd quarter of 2026 if afforded the usual go-ahead from the relevant authorities and smooth integration steps. Innovator’s chief officers and nearly 60 staff will become part of Goldman’s asset management and ETF departments after the takeover.

After the acquisition, the company is happy to report a solid investment in the future of the ETF industry amid a broad comeback in the popularity of active and niche ETFs. Given increasing market volatility and the investors’ desire for protective measures for their capital, there is a steady growth in the use of defined-outcome ETFs. The agreement with Innovator enables Goldman to become more prominent in this sector of the market which is rapidly growing.

The​‍​‌‍​‍‌​‍​‌‍​‍‌ planned merger of Innovator and Goldman Sachs will be a big plus for investors as well as financial advisors. In fact, it will facilitate the access to a wider and more varied range of ETFs that combine the best of a large financial institution and the specialized knowledge of an active fund ​‍​‌‍​‍‌​‍​‌‍​‍‌manager.