Goldman Sachs (GS.N), opens new tab said on Monday it will acquire exchange-traded fund sponsor Innovator Capital Management in a cash-and-stock deal worth about $2 billion, as the Wall Street bank seeks to expand in one of the fastest-growing segments of asset management. The deal will strengthen Goldman Sachs Asset Management's presence in the fast-growing active ETF market.
Active funds lost ground during the equities rally driven by near-zero interest rates, as passively managed index products were sufficient to deliver strong returns.
With the end of loose monetary policy, investors are turning back to actively managed strategies, favoring a more hands-on approach over the passive investing style that has dominated the past decade. "Active ETFs are dynamic, transformative, and have been one of the fastest-growing segments in today's public investment landscape," said Goldman Sachs CEO David Solomon.
