Active Management Lives On in ETFs After $1 Trillion Asset Haul
Active funds are playing catch-up, attracting $112 billion so far this year compared with passive’s $175 billion.
Photographer: BloombergTotal assets held by actively run ETFs in the US have hit the $1 trillion milestone, as investors sink cash into a new generation of strategies — shaking up the passive reputation of this booming corner of money management.
A combination of market gains and inflows carried total assets over the trillion-dollar landmark this week, according to Bloomberg data. While classic index-tracking funds dominate the trading landscape, demand for the tax-efficient wrapper is ramping up across ETFs that allow managers to deviate from the benchmark for additional returns. Cash is flying into funds riding everything from vanilla fixed income and structured credit, to crypto and leveraged stock trades.