05.05.26

Active Managing Is Finally Letting ETFs Charge Again

by: Jack Pitcher

Growing investor demand for actively managed exchange-traded funds (ETFs) is reversing years of declining ETF fees. Active ETFs are rapidly gaining market share after regulatory changes made launching them easier. In 2025, active funds attracted 32% of new U.S. ETF inflows, compared to 9% in 2021, while more than 80% of newly launched ETFs were active products. Major asset managers including BlackRock, J.P. Morgan Asset Management and Northern Trust Asset Management are expanding active ETF offerings because they generate significantly more revenue than passive funds. Popular strategies include income-focused and volatility-protection products using derivatives. Although active ETF fees remain lower than traditional mutual funds, analysts expect competition to gradually reduce costs even as active products continue reshaping the ETF industry.

Read the full article on The Wall Street Journal