ETFs
How do gatekeepers evaluate active ETFs?
The popularity of ETFs has taken off in the asset management industry in recent years, and as they continue to gather flows and gain market share, active ETFs have also begun to skyrocket.
Over the past few years, active ETFs have grown exponentially. Of the 3,605 ETFs available in the Morningstar database as of May 1, 40% were listed as active. In 2019, there were only 350 active ETFs. By 2023, this figure had increased to almost 1,400. Last year, 530 new active ETFs were launched, more than any other year in the previous 10 years, accounting for 73% of new ETF launches.
Active ETFs also gathered inflows; in the first quarter of this year, they raised nearly $66 billion, their best quarter yet. Active ETFs are also slowly gaining market share. At the end of 2023, they represented 5.3% of the ETF market. Today, they represent 7.35% of the ETF market, according to Morningstar.