- Based on findings from FUSE’s Product Management 2024 Benchmark report, plans among product development teams at asset managers are strongly aligned to advisor usage plans in the next 12 months. Among surveyed asset managers, 88% indicated that active ETFs are a major focus over the next 12 months; this coincides with advisors’ plans to increase their usage of active ETFs over the same period (44%), the highest of any product type.
- Despite the demand for active ETFs, most of these products will fail to achieve meaningful scale in their first three years. Just 19% of the active ETFs launched between August 2014 and August 2021 reached $250 million in three years.
- Very few surveyed asset managers indicated plans to eliminate ETFs during the next 12 months. That said, firms must be well prepared to address the challenges of maintaining long-term economic viability while making strategic decisions about whether to retain existing products or merge/liquidate them.
