- Domestic active small cap ETFs overturned their passive counterparts, collecting $4.7B in net inflows YTD through May 2025, while investors pulled $12.6B from their passive peers, reversing a multi-year trend (2020–2024) of passive dominance.
- Passive outflows from these strategies likely reflect asset allocation adjustments as investors seek opportunities in international and emerging markets after years of overweighting U.S. markets. YTD results may also suggest interest in active domestic allocations.
- Dimensional, Avantis, JPMorgan, and Fidelity captured 88% of net inflows into active small cap ETFs in 2024.
- Opportunity isn’t exclusive. Ten other issuers each attracted between $25M and $333M in 2024, signaling room for differentiated strategies with focused distribution.
