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Goldman to acquire NEOS Investments in options ETF deal
The acquisition, valued at up to $2.25 billion, would add about $32.4 billion in assets across 19 US-listed options-income ETFs to Goldman's ETF lineup.
Goldman Sachs agreed to acquire NEOS Investments, a specialist in options-income ETFs, in a deal worth up to $2.25 billion in cash and equity, according to Yahoo Finance.
NEOS manages $32.4 billion across 19 US-listed ETFs, with its NEOS Nasdaq-100 High Income ETF (QQQI) and NEOS S&P 500 High Income ETF (SPYI) together accounting for more than three-quarters of assets.
The funds generate income using index options, which NEOS says can qualify for Section 1256 tax treatment, with gains taxed at a blended 60% long-term and 40% short-term rate, while major peers like JPMorgan’s JEPI and JEPQ derive much of their income from equity-linked notes taxed as ordinary income.
Based on the NEOS lineup’s assets and expense ratios, Yahoo Finance estimates annual revenue of about $220 million, implying Goldman would pay roughly 10 times revenue; the deal would also lift Goldman’s US ETF assets by about one-third, moving it up to number 14 among US ETF issuers.
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