Goldman Sachs' acquisition of Innovator and NEOS targets aging demographics' demand for yield and downside protection, creating sticky AUM that is resistant to competitive displacement.
Todd explains that Goldman acquired buffer ETF firm Innovator and income ETF firm NEOS for roughly $4B combined. These products cater to aging Americans wanting yield and downside protection, producing sticky assets that won't rotate out like hot thematic money. ✦ AI generated
Todd · The Compound · 2026-08-14 · original ↗
starts at this moment · 32:47
So, Innovator and Neos were both bought by Goldman. ... they are catering to the what I believe is the aging demographics of America. You get they want yield, buffer or downside protection. ... These products have legs and and it's sticky. The AUM is sticky. Nobody's selling these products. It's not hot theme money.
verbatim transcript · starts at 32:47
32:47>> both of these categories were acquired by >> by Goldman. Wait, what what's Bruce's company's name? Why am I talking about Innovator? So, Innovator and Neos were both bought by Goldman. >> Yeah. $4 billion worth of uh >> What is the Goldman ETF strategy? >> I know it's more if we as six months ago, I would say I have no idea because they were like, >> "Now you know, now you know. Now it's to
33:06Okay, so they acquired a buffered ETF shop, Innovator, which for the for the uneduciniated, it protects you on the downside over the course of the next 12 months. >> Capru these are like the old school structured products that brokerages used to sell. >> Right. Okay. And then they also acquired NEOS, which does option income ETFs, S&P covered call funds, right? >> So let me tell you, I I ran into Tom
33:28Leiden at the New York Stock Exchange >> today. >> The goat. >> The goat. >> Six months ago. >> He's with the guys from Neos. Yeah. >> And I don't even know. I don't even remember the guys. Some of them didn't even speak English. >> He's buying the Lakers. >> Yeah. >> Yeah. Why not? [laughter] >> I mean, so he goes, "Hey, man. You ever hear of these guys? You should check
33:49these guys out." He's like, "I'm just sort of helping them out, making introductions, right? But these guys have a great product. People love it." And I'm like, "All right, yeah, I'll look into that. What I should have said is, Tom, I don't care what it is. Please, can I have 1%? I want to like what do I need to do to buy 1% of this because this this guy is like just
34:10striking gold every three years. >> A goat. >> He's a goat. >> He's a great great guy. >> We love We love So So they bought >> an income provider and a structured outcome provider. [applause] >> You guys know this. >> Time out. Stop. >> Two2 billion 2.3 >> for both of them. >> 2.3 billion for Neos. >> 2.3 for Neos. I forget. Innovator was like two something.
34:29>> And what was the AUM for Neos? 30-ish low 30 >> 30 billion. >> We don't we don't know if what the terms of the deal are. 2.3 is probably like if this happens and if this happens and if this happens there's probably a lot of ifs but great for >> what what are we wasting our lives doing? >> Yeah. Tom, you want to run the show?
34:44>> We should do it. >> Should I make Tom the CEO of Rholtz? >> Sail off into the >> given his magical touch then. Yes. >> He'll sell he'll sell this company for hundred billion dollars. >> Anyway, no, it's it's enough glazing. They are catering to the what I believe is the aging demographics of America. You get >> they want yield >> yield buffer or downside protection.
35:07>> Uh it's so brilliant. That's my guess. >> Gman on the recent call uh Solomon was talking a lot about leaning into wealth. >> Now they're trying to they're they're doing the the custody thing, but I did not see this one coming. >> No, me neither. Um, >> it's smart though because if they're going to if they're really going to do RAA custody, it can't be for basis points on trades.