Name: ETF Edge, August 31, 2026
Uploaded: 2026-09-01T15:27:17+00:00
Duration: 1170 s

Speakers

Bryon Lake — Chief Transformation Officer & Co-Head of Third Party Wealth, Goldman Sachs Asset Management

Pedro Palandrani — Head of Product Research & Development, Global X

Dominic Chu — Senior Markets Correspondent, CNBC

Summary

CNBC ETF Edge interviews Bryon Lake of Goldman Sachs Asset Management and Pedro Palandrani of Global X about ETF industry innovation and consolidation. Lake argues that Goldman's acquisitions of Innovator and Neos position the firm in fast-growing active defined outcome and derivative income ETFs. Palandrani highlights demand for targeted thematic exposure, covered call income, and more predictable income distributions. Both see the ETF wrapper as the main vehicle for active, income, and thematic strategies.

Goldman Sachs Asset Management acquired Innovator and Neos to expand in defined outcome and derivative income ETFs.
Active ETFs are drawing record flows, with derivative income and defined outcome categories growing rapidly.
Lake cites BALT as a defined outcome ETF and GPIC/GPIX as premium income tools.
Palandrani says S&P 500 concentration is pushing investors toward targeted themes such as defense technology, data centers, and electrification.
Global X highlighted QYLD for covered call income and AIQ as an early AI-themed ETF.
Investors increasingly want target income certainty and more frequent distributions, including weekly income.
Both guests expect continued ETF wrapper innovation, though some future areas are not yet packaged as specific tradable products.

Ideas

Bryon Lake Chief Transformation Officer & Co-Head of Third Party Wealth, Goldman Sachs Asset Management 1:54

Active ETFs attract record investor flows.

Investors are increasingly embracing active ETFs that deliver outcomes different from traditional index funds. ETF net flows hit about $1.2 trillion this year and are on pace for nearly $2 trillion, and the ETF wrapper offers intraday liquidity, transparency and tax efficiency, making active strategies a key growth area.

Bryon Lake Chief Transformation Officer & Co-Head of Third Party Wealth, Goldman Sachs Asset Management 2:15

Defined outcome ETFs offer buffered equity exposure.

Defined outcome ETFs provide downside buffering and can act as an on-ramp for investors who want equity exposure but are worried about risk. The category tripled in size during 2022 and has grown about 40% per year for five years; BALT is cited as an example of a defined outcome ETF that can provide that buffer and diversification.

Bryon Lake Chief Transformation Officer & Co-Head of Third Party Wealth, Goldman Sachs Asset Management 2:22

Derivative income ETFs grow fastest and yield income.

Derivative income is the fastest-growing active ETF category, growing about 80% per year for the last five years. Premium income ETFs like GPIC and GPIX provide consistent income and some downside protection versus benchmarks, making them tools for income-oriented investors.

Pedro Palandrani Head of Product Research & Development, Global X 4:13

Covered calls generate income with equity exposure.

Low fixed income yields after a long low-rate environment pushed investors to seek higher income while maintaining familiar equity exposure. QYLD, Global X's NASDAQ 100 covered call ETF launched in 2013, is a well-known vehicle for that trade, using covered calls to generate income from equities.

Pedro Palandrani Head of Product Research & Development, Global X 6:03

Targeted themes diversify concentrated benchmark exposure.

Because the S&P 500 has become very concentrated in a handful of names, investors are looking for diversification through targeted exposure. Defense technology, data center, and electrification themes are underrepresented in large equity benchmarks and let investors express views in a more targeted way.

Pedro Palandrani Head of Product Research & Development, Global X 9:58

AIQ captures long-term AI thematic opportunity.

AI remains a tangible, long-running equity theme. Global X launched AIQ in 2018, four years before the ChatGPT moment, showing the value of getting ahead of such thematic opportunities. Investors can see and feel AI in today's markets and may want targeted AI exposure or income overlays on AI names.

Pedro Palandrani Head of Product Research & Development, Global X 12:01

Target income ETFs offer predictable option income.

Investors increasingly want certainty around the income generated by option-based ETFs, not just the option exposure. Issuers, including Global X, are focusing on target income or target distribution rate strategies, where call writing and coverage ratios can be managed dynamically to produce a predictable distribution.

Pedro Palandrani Head of Product Research & Development, Global X 16:07

Weekly income ETFs satisfy regular paycheck demand.

Investor preference has shifted from annual or quarterly distributions toward monthly and now weekly paychecks. Global X launched its Income Edge covered call suite this year with weekly distributions, giving investors more predictable weekly income and leveraging the ETF wrapper's distribution capabilities.

ETF Edge, August 31, 2026

Summary

Ideas

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