- In 2020, active ETF launches surpassed active mutual funds for the first time. Through September 2021, there have been 207 active ETFs launched, compared to 123 active mutual funds.
- This data speaks to the shift in demand toward ETFs in the actively managed space, but asset managers should be circumspect about the opportunity in ETFs as a replacement for mutual funds.
- Systematic and quantitative strategies account for most of the new launches, even though fundamental strategies are gaining momentum in ETFs.
- Despite the shift in number of launches, assets that have been raised in these products still tilt clearly toward mutual funds. Part of this is the higher seed capital commitments to mutual funds, but it also reflects the many small, niche ETFs that are flooding the market without much backing.
Product Launches by Year and Current Assets of Launched Funds, 2018-YTD Sept 2021
Source: FUSE Research Network, Morningstar