10.04.24

Active ETFs Triumph Over Passives in Fees From New Flows

by: Steve Johnson

Actively managed exchange-traded funds (ETFs) have taken more than 70% of the management fee income accruing from net flows into U.S.-listed ETFs so far this year. Assets held in passive U.S. ETFs and mutual funds surpassed those of active funds for the first time at the end of last year, according to Morningstar, after active funds suffered $450 billion of outflows in 2023, even as passive funds took in $529 billion. Now, active fund managers are fighting back. Active ETFs have accounted for 28% of net flows into U.S.-listed ETFs this year, well ahead of their 8% of assets.

Read the full article on Financial Times