Active ETFs Now Take 42% of Every Dollar Flowing Into ETFs, Up From 26% in 2024

Exchange-traded funds have historically been associated with passive, index-based investing strategies. However, the industry is experiencing a significant shift toward active management delivered through the ETF wrapper, which offers advantages including intraday trading, tax efficiency, and lower fees compared to traditional mutual funds.
Inflows into actively managed ETFs have accelerated substantially. During the first quarter, investors channeled $245.2 billion into U.S.-listed active ETFs