Will GS's Push Into Options-Based ETFs Enhance Its Competitive Edge?

The banking industry is witnessing a structural shift toward active ETFs and options-based income products, as investors increasingly seek higher income, tax efficiency and downside-risk management within the liquid ETF wrapper. Derivative-income ETFs have grown to roughly $180 billion in assets, seeing a CAGR of more than 70% since 2021, according to Goldman's official press release citing Morningstar.

Against this backdrop, The Goldman Sachs Group, Inc. GS has agreed to acquire NEOS Investments for consideration of up to $2.25 billion in cash and equity, subject to certain performance and service commitments. The transaction is expected to close in the first quarter of 2027, pending regulatory approvals and customary closing conditions.

The acquisition will add $30 billion in assets across NEOS' 19 options-based income ETFs to Goldman Sachs Asset Management's existing $40 billion in income and outcome-oriented options-based ETF solutions. Once complete, the deal will make Goldman Sachs Asset Management the eighth-largest active ETF provider.

The NEOS purchase follows Goldman's acquisition of Innovator Capital Management, and together the deals create a broad options-based ETF franchise spanning buffer, managed outcome and income strategies. As of June 30, 2026, Goldman Sachs Asset Management, Innovator from Goldman Sachs Asset Management and NEOS manage more than $130 billion in ETF assets under supervision.

Overall, Goldman Sachs’ push into options-based ETFs is likely to enhance its competitive advantage by giving the firm greater scale, a broader range of differentiated products and stronger exposure to fast-growing active ETF categories. The addition of NEOS, alongside Innovator, strengthens Goldman’s presence across income, buffer and managed-outcome strategies, helping it compete more effectively for investor assets. At the same time, the expansion should support higher recurring fee revenues and further diversify its Asset & Wealth Management business.

GS Peers Competing for Crypto-Related Exposure

Competition has been intensifying for Goldman as banks like Morgan Stanley MS and JPMorgan JPM are expanding crypto-related capabilities even if they have not yet launched proprietary ETFs.

Morgan Stanley has filed with the U.S. Securities and Exchange Commission to launch ETFs linked to Bitcoin and Solana. The proposed products — the Morgan Stanley Bitcoin Trust and the Morgan Stanley Solana Trust — are designed to give investors direct price exposure to the two cryptocurrencies without requiring them to own or store the tokens themselves.

JPMorgan has taken a broader, infrastructure-led approach to crypto and blockchain. The bank offers crypto trading services to institutional clients and has built out custody capabilities, while also piloting on-chain settlement and tokenized deposits through its blockchain unit, Onyx. JPMorgan has launched blockchain-based platforms for wholesale payments and repo transactions, enabling faster and more efficient settlement using tokenized assets.

Goldman’s Price Performance, Valuation & Estimates

GS shares have jumped 38.8% in the past year compared with the industry’s growth of 26.3%.

Price Performance

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From a valuation standpoint, Goldman trades at a forward price-to-earnings (P/E) ratio of 14.61X, above the industry’s average of 14.25X.

Price-to-Earnings F12M

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The Zacks Consensus Estimate for GS’s 2026 and 2027 earnings implies year-over-year rallies of 34.2% and 4.9%, respectively. The estimates for both years have been revised upward over the past 30 days.

Estimate Revision Trend

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Goldman currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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