Goldman Sachs (NYSE: GS) has agreed to acquire Neos Investments, a company specializing in exchange-traded funds (ETFs), in a deal valued at up to $2.25 billion. For the U.S. investment bank, this is another major step in expanding its asset-management business and strengthening its position in the fast-growing market for actively managed ETFs.
Neos Investments specializes in ETFs that use systematic options strategies to generate investment income. As of June 30, the company managed about $30 billion across 19 funds. Such products are becoming increasingly popular with investors, as they allow them to generate income while also limiting potential portfolio losses amid high market volatility.
For Goldman Sachs, the Neos deal continues its large-scale push into the actively managed ETF market. Unlike traditional index funds, which passively track a specific index, active ETFs use more sophisticated investment strategies and can potentially allow managers to earn higher fees.
After the deal closes, Goldman Sachs’s assets in actively managed ETFs are expected to increase to about $80 billion. The transaction is expected to close in Q1 2027.