{"id":3370,"date":"2024-08-30T03:08:26","date_gmt":"2024-08-30T03:08:26","guid":{"rendered":"http:\/\/blog.valuengine.com\/?p=3370"},"modified":"2024-11-07T03:56:01","modified_gmt":"2024-11-07T03:56:01","slug":"explosive-active-etf-growth-reaches-a-new-milestone","status":"publish","type":"post","link":"http:\/\/blog.valuengine.com\/index.php\/explosive-active-etf-growth-reaches-a-new-milestone\/","title":{"rendered":"Explosive Active ETF Growth Reaches a New Milestone"},"content":{"rendered":"

Since 2021, actively managed ETFs have enjoyed the highest percentage growth of any ETF category.\u00a0 Coupled with the huge decline in traditionally structured mutual funds in the same period, it is understandable that these active mutual fund managers who once shunned ETFs as a fad are now offering ETFs and\/or converting existing funds to ETFs.<\/span><\/p>\n

All 5,000 stocks, 16 sector groups, 140 industries, and 500 ETFs have been updated:<\/b><\/h5>\n
Two-week free trial:<\/b> www.ValuEngine.com<\/b><\/a><\/h5>\n

Active ETFs listed globally reached a new milestone in July, with assets under management climbing to $974.3 billion, according to a recent report\u00a0from London-based ETFGI, an independent research and consultancy firm. The record-breaking figure represents a 32% increase in assets year-to-date, up from $739.9 billion at the end of 2023. In July, actively managed ETFs gathered net inflows of $35.9 billion, bringing year-to-date net inflows to $189.9 billion. It marks the highest year-to-date inflow on record, surpassing the previous high of $86.1 billion set in 2023, ETFGI said.<\/span><\/p>\n

Although the preponderance of ETF assets remains in rules-based index funds, active ETFs’ assets have grown at a faster rate. As the last two decades have passed, financial advisors and financial planners have become more aware of the many structural advantages that portfolios using the ETFs structure have over traditional mutual funds. They are also cognizant of the lower fees and greater transparency that are generally characteristic of ETFs.\u00a0 Many of the assets that have flowed into ETFs have been taken out of traditional funds.<\/span><\/p>\n

A number of well-known fund families such as American Century and Capital Group began migrating to ETFs for defensive reasons but quickly found other advantages. More recently traditional fund complexes, especially those that have suffered a decline in assets under management (AUM), have come to the realization that the costs in providing ETFs are actually much lower than operating traditional funds. This is contrary to previous conventional wisdom.\u00a0 Transfer agency issues all but disappear and portfolio management functions are greatly simplified.\u00a0 Putting cash to work, cash management and tax-related redemption decisions are virtually eliminated.\u00a0\u00a0<\/span><\/p>\n

The ETF wrapper comes with benefits for active investment strategies:<\/span><\/p>\n