Goldman Sachs plans to acquire Innovator Capital Management for $2 billion, making it the second-largest defined-outcome ETF provider. As competition increases in the industry, more consolidation is expected. This move shows the importance of scale and breadth of product offerings in the ETF space.

The deal will position Goldman as the second-largest defined outcome asset manager, behind First Trust, and bring Innovator’s $28 billion in assets under the Goldman name. This acquisition will align Goldman’s offerings with popular trends, meeting the growing demand for defined-outcome ETFs.

CEO Greg Stumm predicts a rise in ETF consolidation as wealth managers seek niche strategies for clients. The acquisition of Innovator Capital Management by Goldman reflects the trend of specialist firms partnering with larger platforms for a broader product range, especially in the financial intermediary world. The move emphasizes the importance of scale and product diversity.

Read more at Yahoo Finance: How Goldman’s $2B Innovator Deal Could Reshape ETF Consolidation