Active ETFs defend stewardship capabilities in face of shareholder engagement crisis

Record number of active ETF launches in 2025

Industry experts have sought to reassure investors about the practice of overseeing and engaging with the companies within active ETFs, as worries mount about passives’ abilities to help enforce ESG standards.

In recent years, investors have increasingly been leaning towards active ETFs, which are passive strategies managed by professionals who make investment decisions for them, as a more tactical investment than pure index trackers, but still cheaper than the average active mandate. So far this year, 59 active ETFs have been launched, a record high compared to 56 in 2024 and only 23 the year before, according to data from Morningstar.  Friday Briefing: Passives will end stock market engagement if we let them But the reputation of just how active these products are has been flagged by C...