Money Managers Predict Active Management as the Future of ETFs
Actively managed exchange-traded funds (ETFs) are gaining popularity as ETF managers seek new strategies beyond passive funds. With passive strategies already saturated, active management allows for differentiation if the manager offers a meaningful deviation from the benchmark. The number of active ETFs launched this year has surpassed passive ETFs by a ratio of three to one, with about 75% of the launches being actively managed. Major asset management firms are leveraging the ETF wrapper to launch active ETFs, including Capital Group, Franklin Templeton, and T.Rowe Price. GMO recently launched its first active ETF, building on its experience managing a traditional actively managed mutual fund.
