Goldman Sachs ETF acquisitions and the blurring line between investing and gambling headlined this week’s ETF Prime. Host Nate Geraci welcomed Mike Akins, founding partner at ETF Action, followed by Paul Baiocchi, head of fund sales and strategy at SS&C ALPS Advisors.
Key Takeaways:
- Goldman is acquiring Neos Investments for up to $2.25 billion, its second major ETF deal of 2026.
- Akins warns that sports betting ETFs give gambling vehicles a misleading regulatory stamp of approval.
- IDOG is up roughly 65% since the start of last year, compared to around 34% for the S&P 500.
Akins opened with Goldman’s agreement to acquire Neos Investments for up to $2.25 billion. It marks Goldman’s second major ETF deal of the year, following its earlier acquisition of Innovator ETFs.
Neos launched its first ETF just four years ago and has since grown to over $30 billion in assets. Akins noted the main integration hurdle will be securing proxy votes from Neos shareholders to approve the change of control required to complete the acquisition.
Akins was also critical of Volatility Shares’ filing for National Hockey League futures contract ETFs, calling them gambling vehicles dressed up as investment products.
He said placing speculative products inside regulated structures gives them an unwarranted “stamp of approval.” A Betterment survey found that 52% of Gen Z investors have pulled from investment accounts to fund sports betting. Akins added that the negative roll yield on these products will make the United States Oil Fund (USO) look tame.
International Dividends and Active Fixed Income
Baiocchi introduced the ALPS International Sector Dividend Dogs ETF (IDOG), which targets the five highest-yielding stocks across the ten Global Industry Classification Standard sectors of the MSCI EAFE index.
The fund holds those names in an equal-weighted portfolio of 50 stocks. Since the beginning of last year, IDOG is up roughly 65%, compared to around 34% for the S&P 500.
See more: Value Stocks Drive IDOG Past Broader Market in July
He also noted that U.S. equities outperformed international stocks for 16 consecutive years before last year. International valuations remain at steep discounts, and a weakening dollar provides a structural tailwind. Most advisors remain structurally underweight international despite targeting 10% to 15% allocations.
Additionally, Baiocchi highlighted the ALPS Smith Core Plus Bond ETF (SMTH). Gibson Smith, the former chief investment officer at Janus, manages the fund. It has gathered over $700 million in year-to-date inflows, focusing on quality and portfolio ballast rather than chasing credit risk or duration.
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VettaFi LLC (“VettaFi”) is the index provider for IDOG, for which it receives an index licensing fee. However, IDOG is not issued, sponsored, endorsed, or sold by VettaFi, and VettaFi has no obligation or liability in connection with the issuance, administration, marketing, or trading of IDOG.
