BlackRock Publishes Active ETF Trends Report
In a recent report, BlackRock ETF product experts highlight the explosion in the active ETF marketplace, both in the growth of assets under management (AUM) and strategies offered. According to the report, “[a]ctive ETF assets under management reached $900 billion globally through the first half of 2024.” The study also found that ETFs are becoming the “wrapper of choice, expanding from 15% of total fund assets in 2013 to 31% in 2023.” Active mutual funds still outnumber active ETFs, however, since March 2021, “over 80 mutual funds with some $76 billion in AUM have converted into ETFs.” The report highlights why investors are looking to active ETFs including tax efficiency, increased alpha, and exposure to different asset classes. Additionally, the team at BlackRock noted regulatory changes could impact asset managers’ development of ETF products over mutual funds.
Click here to view the BlackRock “Decoding Active ETFs” report.