Goldman Sachs to Pay $2 Billion for ETF Issuer Innovator Capital

Goldman Sachs Group Inc. will pay $2 billion to buy Innovator Capital Management, a deal that combines the bank with an issuer of a relatively new type of exchange-traded fund that has caught the attention and ire of some on Wall Street.

Wheaton, Illinois-based Innovator — which has over $28 billion of assets under supervision across more than 150 ETFs — specializes in defined-outcome ETFs, which seek to limit investors’ downside risk in exchange for capping upside potential, and have been popular among financial advisers looking to protect client portfolios.