Assets in the active ETF market have grown to $302 billion as of June 30, which puts AUM within the sector on track to exceed $425 billion by the end of the year, according to the New York Stock Exchange.
According to NYSE’s mid-year active ETF outlook, which lists the predictions it made at the beginning of the year and sees where they stand, cash flow into actively managed exchange-traded funds was $41.9 billion for the first half of 2022. While that figure is behind 2021’s record rate, if the second half of the year ends up keeping pace, 2022 will see another record with more than $80 billion flowing into the sector, as predicted.
At the beginning of this year, NYSE predicted that more than 20 active semi-transparent ETFs will be launched in 2022, and assets will exceed $10 billion. So far, six new active semi-transparent ETFs came to market in the first half and assets stand at $4.2 billion. Per the stock exchange, the current investable asset class limitation to U.S. equity appears to be a real headwind.
The industry also welcomed six active ETFs from three separate issuers via conversion from mutual funds with combined assets on the conversion of $16.4 billion. The exchange projected at the start of 2022 that more than 10 issuers will convert mutual funds to active ETFs, totaling $20 billion. While a few additional issuers have announced their conversion plans, this prediction may need a nudge to come true.
NYSE also forecast that at least one issuer will eclipse $60 billion in AUM. Dimensional ended the first half with $53.5 billion in assets. If their flows in the second half of the year match the first half ($9.1 billion), this prediction should come true.
The exchange also noted in its report that 135 issuers of actively managed ETFs, or roughly 75% of firms, saw positive cash flow in 1H22. In addition, 546 active ETFs, or nearly 65% of all products, saw positive cash flow.
“As advisors continue to look to active managers to help navigate the stock and bond market volatility, asset managers have launched new products to help. Firms have been bringing some of their best ideas into the ETF world in recent years,” said Todd Rosenbluth, head of research at VettaFi.
T. Rowe Price offers a suite of actively managed ETFs. T. Rowe Price has been in the investing business for over 80 years through conducting field research firsthand with companies, utilizing risk management, and employing a bevy of experienced portfolio managers carrying an average of 22 years of experience.
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