Goldman Sachs agreed to acquire Neos Investments for as much as $2.25 billion, according to the announcement, escalating Wall Street's competition in the active exchange-traded fund market beyond the low-cost index products that have dominated ETF growth.
Neos manages $30 billion in assets across 19 active ETFs. The acquisition would add those funds to Goldman's existing active ETF business, positioning the firm as the eighth-largest active ETF manager globally with approximately $80 billion in active ETFs post-deal. Major wealth managers are now competing by acquiring specialized firms that have built client bases in segments where passive strategies dominate, rather than only through scale and fees.
Neos was founded in 2017 and has concentrated on thematic and actively managed ETFs, carving out a niche in an industry where three firms, BlackRock, Vanguard and State Street, control roughly 80 percent of total ETF assets. Goldman's asset management division, which oversees approximately $2.5 trillion, has pushed deeper into ETFs over the past three years, partly to compete with rivals for advisory relationships tied to ETF portfolios rather than mutual funds or separate accounts.
The $2.25 billion valuation implies a multiple of 7.5 times Neos's assets under management, a significant premium to typical ETF platform acquisitions. BlackRock's 2015 purchase of iShares from Barclays valued the platform at roughly 0.5 times assets. Goldman is paying this price based on confidence in Neos's growth trajectory and the stickiness of its client base, according to deal announcements. Neos's active ETFs have attracted retail investors who seek thematic or factor-based strategies without the higher expense ratios that traditional active mutual funds charge.
Goldman joins other Wall Street firms in recognizing that ETF growth is shifting away from index products toward actively managed alternatives. Vanguard acquired Active Investor in 2024 for an undisclosed amount, while Charles Schwab has expanded its in-house ETF business with four active launches in 2025. ETF assets have swelled to over $12 trillion globally, and where differentiation increasingly depends on specialized expertise rather than distribution scale alone.
The deal is expected to close in late 2026, pending customary approvals. Goldman declined to disclose earnout terms or the breakdown of the $2.25 billion price between upfront and contingent payments. Neos founders and executives will remain with the firm post-close to manage the product suite and client relationships, Goldman said.
