ETF Issuers Accelerate Active Product Development Amid Surging Demand
Active exchange-traded funds are reshaping the U.S. investment landscape, with assets soaring to $1.17 trillion in Q2 2025—a sixteen-fold increase from 2018's $71 billion. The first half of 2025 alone saw $197 billion in net flows, putting the year on track to obliterate 2024's record $279 billion total.
Product pipelines are overflowing as 87% of issuers develop transparent active ETFs, while half plan mutual fund conversions to capitalize on the ETF wrapper's tax efficiency. "The transparent active segment has become ground zero for innovation," notes Cerulli analyst Kevin Lyons. Legacy mutual fund managers and established ETF providers alike are expanding beyond passive strategies.