Active ETFs capture 42% of dollar flow into ETFs, up from 26%

Actively managed exchange-traded funds are drawing a substantially larger share of capital flowing into the ETF market, reflecting investor appetite for strategies beyond simple index tracking. The shift underscores growing confidence in fund managers' ability to navigate volatile conditions through active decision-making rather than passive replication of market benchmarks. This reallocation pressures both traditional mutual funds and passive ETF products to compete for investor capital.

• Active ETFs now command a dominant portion of new ETF inflows, a marked increase from their previous position, indicating a meaningful change in how investors allocate fresh capital.
• The trend challenges the long-standing dominance of passive, index-based investment vehicles by demonstrating investor willingness to pay for active management.