- The percentage of client assets allocated to active ETFs increased quickly as the vehicle first entered the mainstream, but advisor allocations have remained somewhat flat over the prior two years and have not exceeded 9%.
- Based on findings from our Product Usage: The Advisor View, 48% of advisors—the highest level—plan to increase their allocation to active ETFs.
- As we noted in last week’s blog, active ETFs are the focus of most asset managers’ new products over the last several years, a trend that will continue. Also, distributor adoption continues to grow, which will be key to greater scale.
- However, we caution that the challenges inherent in selling active strategies do not dissipate because of an ETF mandate.
