ETFs
State Street Says Active ETFs Expected to Reach $260 Billion a Year
After a new torrent of inflows, actively managed exchange-traded funds appear poised to hit a record $260 billion this year, as investors look beyond traditional benchmarks to embrace alternative strategies, from selling from options to cheap quantitative trades.
Portfolio managers have put money into the active sector for 50 straight months following a $22 billion allocation in May, according to data compiled by Bloomberg Intelligence. Building on that momentum, State Street Corp., the third-largest ETF manager, projects that flows into actively managed ETFs could nearly double last year’s record $140 billion. And Morningstar Direct predicts that the total number of these ETF offerings will surpass passive offerings over the next three to five years.