Derivative-income strategies are gaining traction, with over $29 billion in net flows in the first half of 2025. Goldman Sachs’ derivative strategy ETFs have each amassed over $1 billion in assets. Innovation in tax efficiency and covered-call strategies are emerging, while utilizing less liquid options may increase risk.

ETF issuers are expanding their active product offerings. Private credit ETFs are slowly entering the market, but their proliferation depends on buyer benefits compared to public fixed income. Index providers are exploring ways to replicate private-market returns using liquid assets, integrating private investing concepts into ETFs.

Read more at Yahoo Finance: Derivative-Income Strategies Gobble Up Active Flows: GSAM