Options-based ETFs near $400 billion with more than 1,000 funds

Options-based ETFs now hold nearly $400 billion across more than 1,000 funds, ETF Trends reported on Oct. 21. The category has taken in nearly $100 billion of net inflows so far in 2026 and grown about 30% year on year, according to the report.

Derivative income funds hold about $230 billion, or roughly 59% of category assets, per data from Innovator ETFs by GSAM cited in the report. That segment is the largest, has captured about two thirds of category flows and has grown about 35% year on year.

The report attributes derivative income's pull to income seekers moving away from bonds as the 10-year Treasury yield carries a five-handle. Derivative income offers equity-linked payouts with upside mostly capped and positive correlation to equities on the downside, a risk profile that differs from fixed income.

Defined outcome ETFs, the buffer products, hold about $77 billion across nearly 500 unique funds, the report says. Dividing one figure by the other puts the average fund at roughly $154 million, though that is an average rather than a median. The report ties the slower growth to solid earnings, economic growth and a rising stock market, all of which have reduced demand for downside protection.

GSAM CIO Graham Day said earlier this year that concerns about risk have been growing. The report notes advisors increasingly weigh defined outcome products for risk management rather than for returns alone. The category data comes from Innovator ETFs by GSAM, an issuer Goldman Sachs Asset Management acquired, and the pending Neos acquisition is a separate $2.25 billion deal expected to close in early 2027.