Goldman Targets 'Boomer Candy' ETFs In $2 Billion Innovator Deal

Benzinga

Goldman Sachs will acquire Innovator Capital Management for about $2 billion to expand into the booming market for defined-outcome “boomer candy” ETFs. Innovator manages $28 billion across 159 funds focused on buffer strategies that cap losses while preserving upside, a favorite among baby boomers and near-retirees. The deal will be paid in cash and equity tied to performance targets.

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00:00It's Benzinga bringing Wall Street to Main Street.

00:02Goldman Sachs agreed to buy Innovator Capital Management for about $2 billion in a bid to

00:07expand into the fast-growing Boomer Candy corner of the ETF market, according to the Wall Street

00:12Journal. Innovator oversaw about $28 billion across 159 funds and specializes in defined

00:19outcome buffer ETFs that use options to limit losses while preserving some upside. Baby Boomers

00:25and near-retirees have embraced these products as a conservative way to stay invested,

00:29giving rise to the Boomer Candy label. Buffer funds have surged in popularity as investors

00:34brace for volatility and potential downturns, a trend innovator helped launch with its first

00:39offering in 2018. Buffer funds are active ETFs managed to select securities and seek out

00:45performance, rather than passively tracking an index like the S&P 500. Goldman said the deal

00:51will be paid in cash and equity contingent on meeting-specific performance goals.

00:55For all things money, visit Benzinga.com.

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