It’s a good day to be a buffer.
Last week, Goldman Sachs announced plans to acquire defined-outcome ETF provider Innovator Capital Management in a deal worth $2 billion. The move will catapult Goldman from an early-stage defined-outcome issuer, having launched its first buffer products in 2023, to the second-largest player. As new product providers continue to spring up — some 50 ETF brands have already launched this year, according to VettaFi investment strategist Cinthia Murphy — issuer consolidation is expected to become a mainstay in the industry in the years to come.
“This pace of expansion will likely lead to consolidation and M&A activity because competition in this industry is only getting fiercer,” Murphy said. “While some ETF providers may look for scale and distribution muscle through M&A, others may look to grow their footprint by acquiring unique…
