06.17.26

Active Strategies Dominated New ETF Launches in 2025

by: Elaine Misonzhnik

Actively managed exchange-traded funds (ETFs) accounted for 84% of new ETF launches in 2025, highlighting a continued shift in the industry toward active strategies, according to new report from Cerulli Associates. The report found 1,132 ETF launches during the year, up from 752 in 2024, alongside strong inflows of $1.5 trillion and a growing U.S. ETF market now worth $13.4 trillion. Industry issuers are increasingly prioritizing active and transparent strategies, with most firms planning to launch new active ETFs. However, analysts caution that rapid product expansion is also likely to increase closures, especially among niche or underperforming funds. While active ETFs are gaining popularity, long-term data still shows most underperform passive benchmarks, with success rates particularly low in U.S. equity strategies. Despite this, demand remains strong as investors seek more targeted and flexible portfolio tools.

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