Active ETF launches have increased this year, but many struggle to find shelf space at broker-dealers. Inflows are strong, nearing 2024 levels by mid-2021, yet 71% of ETF issuers find it challenging to gain visibility. Despite this, 86% of new US ETFs in the past year were active products, with 37% of sales going to them.

Fund shops are rapidly adding new ETFs or converting mutual funds, indicating high demand. The SEC is close to approving a dual-share-class structure, prompting companies to act quickly. Nearly 9 in 10 ETF issuers are developing transparent active ETFs, with JPMorgan reporting that 37% of sales this year have gone to active products.

The influx of new ETFs, including niche and meme coin strategies, may lead to more closures in the future. Balancing new trends with expertise is crucial for asset managers, with lessons to be learned. The ETF market continues to evolve rapidly, with many companies adapting to meet changing demands and regulations.

Read more at Yahoo Finance: Active ETFs Keep Coming. Selling Them Is Another Story