Goldman Sachs is actively expanding its asset management division through strategic acquisitions in the ETF space. The firm recently announced an agreement to acquire Neos Investments for up to $2.25 billion in cash and equity. This marks Goldman's second major ETF deal of the year, following its earlier acquisition of Innovator ETFs. The Neos acquisition will add $30 billion in options-based income ETFs to Goldman Sachs Asset Management, boosting their combined active ETF assets under supervision to $80 billion, positioning them as a top eight active ETF provider.
The ETF industry as a whole is experiencing rapid growth and a proliferation of new and sometimes unconventional products. Over 900 ETFs have launched this year through August 5th, putting 2026 on track to rival last year's record. This trend includes proposals like Volatility Shares' filing for 32 ETFs tied to the futures contracts of individual NHL teams, which have drawn criticism for potentially blurring the lines between investing and gambling. Critics, such as Mike Akins of ETF Action, argue that such products lend a misleading regulatory stamp of approval to what are essentially speculative vehicles.
Concerns have been raised about the viability and market mechanics of these novel ETFs. For instance, questions persist regarding how market makers would hedge NHL team performance ETFs, how closely ETF prices would track their underlying value, and what would happen during the offseason when there are no games. Despite the rapid pace of new ETF introductions, industry experts like Todd Sohn of Baird Strategas emphasize the challenges of attracting assets in an increasingly competitive and potentially saturated market without clear solutions and distribution plans. He notes that while launching an ETF is easier than ever, making a market for it is not.
In related news, the ALPS International Sector Dividend Dogs ETF (IDOG) has demonstrated strong performance, being up approximately 65% since the beginning of last year, significantly outperforming the S&P 500, which was up around 34% over the same period. This ETF targets the five highest-yielding stocks across the ten Global Industry Classification Standard sectors of the MSCI EAFE index, holding an equal-weighted portfolio of 50 stocks.
