From Yahoo Finance: 2025-04-09 17:45:00

Active ETFs are becoming mainstream investments, with industry leaders from Goldman Sachs and Morningstar discussing their growth at a recent LinkedIn event. While active ETFs make up 8% of the $10 trillion ETF market, they are expanding at a 20% annual rate, offering new opportunities for investors and investment firms.

The rise of active ETFs signals a shift in how investors access professional management while benefiting from the ETF structure. Lake emphasized the role of technology in revolutionizing investment access, with personalization and customization driving the trend towards varied ETF capabilities and direct indexing.

Market volatility has demonstrated the resilience of ETF structures, with ETFs comprising 36% of recent trading volume. Concerns about portfolio transparency in active management ETFs have been addressed, as investors value increased information access. Future innovation is expected in active ETF growth, separately managed accounts, and retail access to alternative investments.

Private market access is becoming increasingly important, as companies stay private longer and seek capital through private markets. The industry trends towards increased personalization options, but investors may need help navigating the growing ETF landscape to find the best opportunities among the expanding choices.

Read more: Active ETFs Gain Speed as Investors Seek New Strategies