Fuse Blog

Active ETF Flow Dynamics: Industry Demand Doesn’t Ensure Scalability

In a recent blog post, we explored the surge in active ETF launches. Given the interest in active ETFs, we sought to explore another angle by looking at the number of all active ETFs, excluding money market funds and fund-of-funds, to gauge net sales levels since 2022 through May 2024.

  • On average, the majority (72%) of active ETF net flows fell within the range of $50 million in net inflows to $50 million in net outflows from 2022 through May 2024.
  • Furthermore, 51% of active ETFs recorded outflows during the period. However, 68% fell into negative sales territory during 2022 and 2023, underscoring the fierce competition asset managers faced when the market was flooded with new products.
  • Looking at the year-to-date through May 2024 period shows a more promising trend, with a significant number of active ETFs generating higher inflows. However, it’s still in the early innings to say where 2024 will land.
Blog 6.18.24 Rev