Wealth Management·2025-12-01 14:02Core Viewpoint - Goldman Sachs Group Inc. is acquiring Innovator Capital Management for $2 billion, aiming to enhance its position in the defined-outcome ETF market, which has gained popularity among financial advisers and investors seeking to mitigate downside risk while capping upside potential [1][2]. Group 1: Acquisition Details - The acquisition will combine Goldman Sachs with Innovator, which manages over $28 billion across more than 150 ETFs, specializing in defined-outcome ETFs [1][2]. - The deal is expected to close in the second quarter of 2026, pending regulatory approvals [7]. Group 2: Market Context - Defined-outcome ETFs, also known as "buffer funds," have seen increased interest as investors look for safer alternatives amid market volatility, with approximately $11.4 billion invested in structured outcome products this year, including $4.1 billion in Innovator's offerings [4]. - The structured outcome ETF category has grown from under $60 billion at the end of 2024 to roughly $76 billion currently [5]. Group 3: Strategic Implications - Following the acquisition, Goldman Sachs Asset Management's assets under management in ETFs will increase from $51 billion to $79 billion, positioning the firm among the top 10 largest active issuers [6]. - Innovator's team of over 60 employees will join Goldman's wealth and ETF teams, enhancing the firm's capabilities in this growing market [7].