ALSO READ | Boost for Saudi’s wealth management sector as Goldman Sachs sets up division in Kingdom

Growth in derivative income ETFs has accelerated as investors expect modern solutions to deliver attractive income, navigate interest rate volatility, and manage risk in the transparent, tax-efficient ETF wrapper.

As per the Morningstar estimates, industry-wide, derivative income ETFs have grown to approximately USD 180 billion in assets under management (AUM), apart from representing one of the fastest-growing categories within the financial vertical, with a compound annual growth rate (CAGR) of more than 70% since 2021.

NEOS has been one of the market leaders in the derivative income category since launching its flagship options-based income ETF suite in 2022.

“Our vision for NEOS since our founding has been to meet investors where they are, challenge conventional thinking, and develop innovative investment solutions that aim to help achieve better outcomes. Every investor’s income needs, risk tolerances, and objectives are unique, and we built our business with that core understanding. Our commitment to that principle is absolute,” said Garrett Paolella, co-founder of NEOS.

“As we think about the next chapter for our business, Goldman Sachs Asset Management is a partner that shares our commitment to investment excellence and innovation. Together, we’ll combine NEOS’ entrepreneurial spirit with Goldman Sachs’ scale, expertise, and resources to expand the reach of NEOS’ solutions and deliver even greater value for our investors,” remarked Troy Cates, co-founder of NEOS.

“As of June 30, 2026, Goldman Sachs Asset Management, Innovator from Goldman Sachs Asset Management, and NEOS manage more than USD 130 billion in ETF assets under supervision (AUS),” Goldman stated.

As per the estimates from Morningstar and the Wall Street giant, the above-mentioned combination will create the eighth largest active ETF manager as of June 30, 2026.

“With complementary sales and marketing capabilities, we believe there are significant opportunities to grow the firm’s overall ETF franchise as wealth demand continues to grow globally,” Goldman remarked further.

NEOS’ investment capabilities will help Goldman Sachs Asset Management expand its efforts to deliver attractive investment performance and exceptional service to its clients.

“Goldman Sachs Asset Management offers a broad range of direct indexing and separately managed accounts, active ETFs, and alternative investment strategies, including through its G-Series evergreen funds. The partnership seeks to provide NEOS the scale and resources to strengthen its brand and ability to serve investors in new markets, while preserving the firm’s distinct philosophy,” Solomon commented.

Following the completion of the transaction, NEOS’ co-founders will join Goldman Sachs Asset Management as partners.

“They bring decades of expertise in options-based investing to advance Goldman Sachs Asset Management’s leadership in active ETFs, tax-efficient income strategies, and investment solutions. Upon completion of the transaction, it is expected that the full NEOS team will join Goldman Sachs Asset Management, including founders, investors, and client service teams,” Solomon noted.

The acquisition, expected to close in the first quarter of 2027, strategically expands Goldman’s more durable revenue, apart from reinforcing its commitment to offering investors comprehensive solutions.