Active ETFs gaining popularity in model portfolios, expected to reach $4 trillion in assets by 2030.

From Yahoo Finance: 2025-06-23 06:10:00

Active ETFs are now the top asset managers’ choice for model portfolios, surpassing passive ETFs. With over $165 billion in net inflows through May and more than 500 strategies launched last year alone, active ETFs are gaining popularity and expected to reach $4 trillion in assets by 2030.

Financial professionals are capitalizing on the active ETF trend, with 44% of model portfolios including at least one active ETF as of March. The average allocation to active ETFs in these models stands at 33%, showing a significant increase from previous years.

GraniteShares has joined the active ETF market by submitting a request to the SEC to launch YieldBoost ETFs. These ETFs optimize yield from options strategies linked to investments like Tesla or the Nasdaq, reflecting the growing demand for leveraged ETFs, which saw inflows of $10.95 billion in April, surpassing a five-year high.

Read more: Active Strategies Are Coming for Model Portfolios