Goldman Sachs has agreed to buy exchange traded fund platform Neos Investments in a deal worth up to $2.3bn, as the Wall Street bank expands its asset management operation. The transaction for Neos, which has about $30bn in assets under management, would make Goldman a top-eight provider of active ETFs, with combined assets of $80bn.

Goldman and other banks are expanding into active ETFs—publicly traded vehicles constructed by portfolio managers—which typically command higher fees than passive counterparts. At the end of last year, Goldman scooped up ETF provider Innovator Capital Management through a $2bn deal to add $28bn in assets under supervision.

Bank chief executive David Solomon said Neos had managed to build a strong market presence across a diverse investor base and that the acquisition was an excellent strategic and cultural fit.