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The money flowing into active ETFs has led to the creation of a wide range of these funds across asset
classes. As the breadth of the active ETF universe increases, investors and their advisors can access funds to
meet a wide array of needs. We continue to see fresh active ETF launches every few weeks, too, so there's no
shortage of new strategies to evaluate. Asset managers are responding to the demand for these products,
especially as the active mutual fund category sees persistent outflows and limited innovation.
Wrapping Up and Looking Ahead
Active ETFs combine the potential benefits of active management with the features of the ETF structure–in a
way, they merge the old and the new in a single category. While these funds don't yet dominate the
marketplace, this type of ETF is seeing strong demand and a wave of unique product offerings. These trends
are also unlikely to abate anytime soon, illustrating the importance of active ETF fluency. We hope you've
enjoyed exploring the active ETF realm and, as always, we welcome your questions on ETFs or other
investment topics. In our next post for this series, we'll investigate the tax efficiency of active ETFs, especially
when compared with active mutual funds. We look forward to sharing our research with you!
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Mar-20 Jun-20 Sep-20 Dec-20 Mar-21 Jun-21 Sep-21 Dec-21 Mar-22 Jun-22 Sep-22 Dec-22
Active ETF AUM by Category (in $B)
US Equity Sector Equity International Equity Allocation Taxable Bond
Municipal Bond Alternative Commodities Nontraditional Equity Miscellaneous
Data from Morningstar
