Goldman Sachs Buys ETF Manager Neos for Up to $2.25 Billion

Goldman Sachs is expanding its ETF business with a major acquisition.

The bank has agreed to buy Neos, an existing ETF manager, for up to $2.25 billion.

This deal marks Goldman's latest move into the niche corner of the ETF market where complex strategies can still command premium pricing.

Neos's fee structure brings in about $222 million in annual revenue, according to Bloomberg Intelligence estimates.

The bank is paying a premium for Neos because its funds charge above-average fees that investors are willing to pay.