"Goldman is working to diversify their wealth management business lines,” said Goldstone. “With their acquisition and rebranding of United Capital, the expected launch of a robo advice product, and the development of their Marcus brand, they are aggressively expanding services to offer mass-affluent, younger, and less wealthy clients."
The Folio acquisition also makes sense strategically, he added.
"The acquisition of Folio will give them a foothold in the RIA custody business, Goldstone said. "Folio's fractional share trading capabilities will pair nicely with services offered on smaller accounts. Fractional shares allow smaller accounts to be invested in fully diversified portfolios. Additionally, Folio's direct indexing capabilities may be attractive to Goldman as direct indexing is a tool that is gaining in popularity and allows for greater customization of indexed portfolios."