M&A Mania Hits ETF Industry: Who’s Next?

In August, a flurry of ETF-related deals were announced and expected to close by early 2027.

Goldman Sachs is buying NEOS Investments. T. Rowe Price plans to add F/M Investments. Victory Capital is acquiring First Eagle. The merger mania is worthy of discussion among exchange-traded fund pundits. Thankfully I got to speak on this topic last week on ETF Prime with Nate Geraci, president of NovaDius Wealth Management. Watch the discussion below and freely start at the 14-minute mark.

Key Takeaways:

• The ETF industry has begun to consolidate, but there remain potential acquisition targets. Amplify and BondBloxx are two examples.
• Franklin Templeton has a legacy of growing through deals and could be on the hunt for a new partner.
• Crypto asset managers could appeal to a larger firm or to one another as the industry remains crowded.

Geraci kicked us off by highlighting what’s behind this merger trend. Large asset managers need differentiated products. Meanwhile, nimble, specialized issuers require the vast distribution power of established financial giants. Geraci prompted me to offer up ETF providers that could be in the next wave of deal making. I obliged.

High-Growth Targets

In my opinion, a few companies are prime targets for larger firms looking to instantly scale their product lineups: