Investors prefer active ETFs while fixed income flows dominate in H1 2023

Morningstar report

Active ETFs are gaining traction according to a new report from Morningstar, which found the category has grown organically by 14% during the first six months of the year.

This compares with just 3% growth in fund flows for passive ETFs, which are often a more popular option due to their low costs. However, passive fixed income ETFs have grown to 29% of global fixed income assets - up from 8% since the end of 2008.  Thematic ETFs benefit from AI boom throughout H1 Indexed strategies now account for a staggering 39% of assets globally - compared to 31% at the end of 2019 - representing $16.2trn. Active ETFs in particular are becoming more popular in Asia, with the sub-category seeing a 78% growth rate in the region over the first half of 2023. ...