Goldman Sachs agreed to acquire NEOS Investments, an options-based income ETF manager, for $2.25 billion, according to the announcement. The deal adds $30 billion in assets under management across 19 ETFs to Goldman's asset management division, with closing expected in the first quarter of 2027.
NEOS specializes in covered-call and put-selling strategies packaged for retail and institutional investors. Options-based ETFs have grown into a material segment of the broader fund market, with these products using covered-call writing and cash-secured put selling to generate monthly distributions.
Goldman's asset management unit has pursued growth through acquisition and organic launches in ETFs since 2020, when it began building its ETF platform after years of relying on third-party distribution partners. The NEOS purchase is the largest acquisition in the division since it acquired NN Investment Partners' ETF business in 2023 for an undisclosed sum. NEOS operates 19 funds with a combined $30 billion in AUM, making it one of the more substantial independent options-focused ETF shops operating today.
Options-based income ETFs have emerged as one of the fastest-growing segments in the U.S. fund market. These products appeal to retirees and income-focused allocators seeking monthly payouts. Industry data shows options-based ETFs gathered roughly $25 billion in new money during 2025, a trend that has continued into 2026.
The deal values NEOS at 75 times the $30 billion in assets it manages, or approximately $0.075 per dollar of AUM. Options-focused fund managers have historically commanded premium valuations given the operational complexity of their strategies and the stickiness of their investor bases.
Goldman said it expects the transaction to close in the first quarter of 2027, subject to customary closing conditions. The bank did not announce changes to NEOS's leadership or product lineup as part of the agreement.
Goldman is absorbing $30 billion in options-based AUM for $2.25 billion, or 7.5 basis points per dollar of assets under management. If Goldman retains 90 percent of NEOS assets through 2028, the deal pays for itself in AUM fees alone within three years at standard ETF fee rates of 25 to 40 basis points.
Traditional asset managers face pressure to build or acquire capabilities in higher-margin product categories. If Goldman successfully integrates NEOS without significant client outflows, the deal may prompt similar acquisitions of options-focused ETF shops among peers seeking faster entry into income-focused markets.