Deep Dive: Active ETFs are set to drive growth for the ETF industry

22.3% organic growth rate

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". ...