Last week, BlackRock’s iShares came out with its first two active ETFs. Moreover, the fund provider has filed to launch international versions of its “Enhanced” active ETF series. [iShares Enters the Actively Managed ETF Arena]
Nevertheless, active funds still have a tough road ahead as the active strategies are still a relatively new concept in the ETF world. There are only 56 active ETFs with around $12.6 billion in assets under management, compared to the over 1,400 passive ETFs with $1.46 trillion on the market.
“You are going to see increased product development,” Alec Papazian, associate director at Cerulli Associates, said in the article. “Assets will continue to grow, but they will represent a small proportion of the market.”
For more information on active ETFs, visit our actively managed ETFs category.
Max Chen contributed to this article.