State Street Says Active ETFs Set for $260 Billion Annual Haul
- May’s $22 billion intake was 50th consecutive net gain
- Active ETF total may exceed passive in 3 years: Morningstar
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After a fresh torrent of inflows, actively run exchange-traded funds look poised for a record-breaking $260 billion haul this year as investors go beyond traditional benchmarks to ride alternative strategies, from selling options to riding cheap quant trades.
Portfolio managers have poured money into the active sector for 50 consecutive months after a $22 billion allocation in May, data compiled by Bloomberg Intelligence show. With that momentum, State Street Corp., the third-largest ETF manager, predicts flows into actively run ETFs may be almost double last year’s record $140 billion tally. And Morningstar Direct sees the total number of such ETF offerings surpassing passive ones in the next three to five years.