Actively managed exchange traded funds hold a scant percentage of the industry’s total assets under management, but that could change in a big way over the next several years.

Increased demand for the products and the potential for a more favorable regulatory environment could make actively managed ETFs a $500 billion asset class by 2020, according to a new report by SEI Investments.

“Pooneh Baghai, co-leader of McKinsey’s Americas Wealth Management, Asset Management and Retirement Practice, predicts that assets in actively managed exchange-traded funds will explode to $500 billion by 2020, up from $15.2 billion today,” reports ValueWalk, citing SEI.

For the week ending June 13, total AUM for U.S.-listed actively managed ETFs resided at $16.1 billion across almost 90 funds, according to AdvisorShares data.

Led by the PIMCO Total Return ETF (NYSEArca: BOND), PIMCO is the dominant purveyor of actively managed ETFs with $7.8 billion across nine funds, according to AdvisorShares data. WisdomTree (NasdaqGS: WETF) and Advisorshares are each approaching $2 billion in actively managed ETF assets. First Trust is the only other issuer with over $1 billion in active ETF assets, but helped by the SPDR Blackstone/GSO Senior Loan ETF (NYSEArca: SRLN), State Street (NYSE: STT) is getting close to having $1 billion in actively managed ETF assets. [State Street, MFS Partner on Active ETFs]