And Goldman Sachs today making a big bet on ETFs. Let's get to Dom Chu who has today's ETF bet. Hey Dom.>> All right. So Scott go Goldman Sachs announced last Monday that it has agreed to buy Innovator Capital Management, a provider of defined outcome ETFs for roughly $2 billion. So joining me now is Brian Lake.He's the co-head of Third Party Wealth over at Goldman Sachs Asset Management. Brian, this was a very big deal and it just kind of expands the product offerings that Goldman Sachs Asset Management Ga ...

Acquisition and Expansion - Goldman Sachs agreed to acquire Innovator Capital Management, a provider of defined outcome ETFs, for approximately $2 billion [1] - The acquisition expands Goldman Sachs Asset Management's (GSAM) product offerings, particularly in actively managed ETFs and defined outcome/income-oriented ETFs [2] Demand and Growth of Defined Outcome ETFs - Client conversations reveal increasing interest in Buffer ETFs and defined outcome ETFs [3] - The defined outcome ETF category, invented in 2018, has experienced a cumulative average growth rate of approximately 60% over the past 5 years [5] - Research suggests the defined outcome ETF category could grow by four to five times over the next 5 years [5] Features and Benefits of Defined Outcome ETFs - Defined outcome ETFs can provide downside protection and a smoother investment experience while maintaining equity exposure [7] - These ETFs can be used to gradually re-enter the market and build a diversified portfolio aligned with specific investment goals [8] - The defined outcome category includes income-oriented strategies for yield enhancement and targeted buffer strategies for downside protection [9] - Innovation in the defined outcome space includes dual directionals and auto callables, offering institutional-level strategies through ETF technology [10][11] Example ETF Performance - The Innovator Defined Wealth Shield ETF (BALT) has more than doubled the performance of the S&P 500 in a one-year period [6]

Market Overview - Traditional valuation metrics indicate a stretched market in the S&P 500, suggesting potential overvaluation [1] - Despite this, many investors view equities as a core portfolio component and are hesitant to sell [1] Company Profile - Binary Tree Analytics (BTA) has a background in investment banking cash and derivatives trading [1] - BTA aims to provide transparency and analytics for capital markets instruments and trades, focusing on Closed-End Funds (CEFs), Exchange-Traded Funds (ETFs), and Special Situations [1] - The company targets high annualized returns with a low volatility profile and has over 20 years of investment experience [1]

ETF Market Trends and Flows - The ETF market experienced strong inflows, with September seeing $20 billion, driven partly by rotation from gold [2] - September ETF flows exceeded $100 billion, a significant amount compared to historical norms [3] - The ETF market is on track to set a new record this year, potentially reaching $1.3 trillion in total flows [4] - Flows are largely following performance [4] ARK Invest's Strategy and New Products - ARK Invest is launching a new suite of "buffer" ETFs, designed to offer exposure to innovation with reduced volatility [2][28] - These "diet" ETFs aim to provide investors with a way to access ARK's investment strategies while mitigating downside risk, offering uncapped upside potential [29][33][34] - ARK sees opportunities in crypto assets, viewing them as part of a barbell strategy alongside equities and gold [13] - ARK has exposure to Bitcoin, Ether, and Solana, believing all three will play an important role [18][19] Macroeconomic Outlook and Policy Impacts - Goldman Sachs is bullish for the rest of 2025 [1] - ARK believes deregulation in crypto and AI is significant [5] - A tax policy measure allowing full expensing of manufacturing structures, equipment, domestic R&D, and software could lead to an economic boom [6][7] - ARK anticipates a shift from a rolling recession to a recovery and then a productivity-driven boom [8] - ARK expects interest rates to continue to decline and inflation to fall below 2% next year [10][11]