We noted recently that Goldman Sachs (GS) had decided to enter the exchange-traded fund fray in a pretty meaningful way. Goldman Sachs' first ETF will passively follow index tracking companies in Brazil, India, China and South Korea. Other Goldman Sachs ETFs are coming.

Lots of other firms are stepping up their activity. BlackRock of course is leading the pack, by dint of its deals for Barclays Global Investors and iShares. All this underscores a market that is soaring. The Financial Times reports that ETFs had more than $1 trillion under management, up nearly 50 percent from last year. The United States continues to be the most active area, with assets surpassing $705 billion, up 42 percent from a year earlier. The rise of ETFs is stepping up the passive vs. active war, even as more active ETFs come down the pike. We'll likely see a lot more innovation in 2010. 

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