Fuse Blog

Product Development Plans

  • Active ETFs continue to be the top priority for asset managers’ product development plans. More than 60% of surveyed product executives expect active ETFs to be a major focus for 2023, with only 10% of managers saying they will not place any focus on this vehicle structure. This contrasts with only 20% of managers placing a major focus on semi-transparent active ETFs (and 0% on passive ETFs). 
  • Separate accounts, both model-delivered and traditional, will also be a key area of focus for firms over the next twelve months, finishing second and third respectively. Both structures were selected by at least 45% of firms to be a major focus as advisor use of separate accounts increases. 
  • While active mutual funds were the next highest priority for product development teams, it is interesting to see model portfolios and direct indexing following closely behind. Managers continue to explore new product structure options in order to remain competitive and to provide packaging that is more compelling and easier to use.

Product Development Focus by Product Structure over the Next 12 Months

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Source: FUSE Product Survey, 2022