The global active ETF market has continued its rapid expansion, underlining the growing relevance of the structure for European investors and asset managers.
According to ETFGI’s latest report, global assets invested in actively managed ETFs reached a record US$2.33tn at the end of April, as the sector attracted US$67.02bn of net inflows during the month. Year-to-date net inflows reached a record US$311.66bn, with April marking the 73rd consecutive month of net inflows into active ETFs.
Although the report is global in scope, the figures provide further evidence that active ETFs are moving firmly into the mainstream. This matters for Europe, where the market remains less developed than in the US but is seeing increased product development, broader issuer interest and growing investor familiarity with the ETF wrapper as a way to access active management.
Equity-focused active ETFs continued to dominate demand, gathering US$48.87bn of net inflows in April and US$181.21bn over the first four months of the year. Fixed income active ETFs also continued to attract assets, with US$16.35bn of inflows in April and US$110.61bn year to date. For European investors, that broadening beyond equities is important, as active fixed income ETFs are increasingly being used to deliver duration, credit and income strategies in a more transparent and tradeable format.
The continued growth of the global market strengthens the case for further active ETF launches in Europe, which we report on regularly.
According to ETFGI, at the end of April there were 5,103 actively managed ETFs globally, with 6,997 listings from 706 providers across 49 exchanges in 39 countries. Dimensional remained the largest active ETF provider globally, followed by JP Morgan Asset Management and iShares.
Our view
David Batchelor, senior analyst at QuotedData, said: “The latest ETFGI figures show that active ETFs continue to be a structural growth area rather than a short-term product trend. For Europe, the opportunity is still at an earlier stage than in the US, but that is part of the attraction. As more managers bring established active capabilities into an ETF format, investors should benefit from greater choice, sharper competition and wider access to strategies that combine active decision-making with the trading flexibility and transparency of ETFs”.
