Active ETFs will be the “major drivers of growth” in the ETF industry, due to the benefits of the ETF wrapper merging with the advantages of the “active tilt”.
Europe-domiciled active ETFs have gone from year-end assets under management of €8.7bn to €34.9bn in the past five years and, as of 2023 so far, they have enjoyed an organic growth rate of 22.3%, according to data from Morningstar Direct. The growth is also represented in the Europe-domiciled ETF market share, with active ETFs' share growing from 1.3% to 2.3% since 2018. Travis Spence, head of EMEA ETF distribution at JP Morgan Asset Management, expects this trend to continue: "We view actively managed ETFs as one of the major drivers of growth in the ETF industry going forward". ...
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