Amidst a year of volatile markets and record-high inflation, active management became more popular among investors in 2022. Plus, as more investors accepted ETFs as a better way to invest in investment strategies, active ETFs gained in market share as part of an overall move towards ETFs broadly.
ETF issuers took notice, launching 212 active ETFs YTD as of October 28. This is more than any year (with the exception of 2021). And that was with two months still left in the year.
“Active ETF launches have represented the majority of new ETF launches over the past three years,” Morningstar’s Ben Johnson tweeted, adding: “58% of all actively-managed ETFs have been launched since the beginning of 2020.”
So, with more financial advisors and investors kicking the tires of active management during the year, here were the most-read stories on active ETFs in 2022:
1. 3 Trends Advisors Should Expect in 2022 for Active ETFs
Even before the year started, the writing was on the wall: The most-read story on active ETFs for the year actually came out in December 2021. The ETF industry was growing at a torrential pace, with most new funds being actively managed. So, with the number of active ETF launches growing, financial advisors wanted to know which big trends to watch out for in the coming year. And what could they expect in 2022? Volatility would drive more investors to active funds, the industry would see increased mutual fund conversions, and investors would see more novel thematic ETFs.
2. On the Front Lines of Flows in the New Year: Defense and Income
The second most-read story offered a sign of things to come. The story came out in January when markets got off to a rocky start, a December inflation report showed a 7% year-over-year increase, and the Federal Reserve indicated that it would raise interest rates. And we saw how these things played out over the year. So, ETF flows halfway into January reflected a more defensive mentality, including a move into actively managed funds.
3. Value Buys Exist for Growth-Focused ETFs
By March 30, it was pretty clear that market volatility wasn’t going anywhere. Advisors and investors wanted to know where the investment opportunities were. So, the third most-read story discussed how the MSCI ACWI Growth Index being down presented an opportunity for growth exposure on the dip, making it a compelling value play. One way to make this play could be through the actively managed T. Rowe Price Growth Stock ETF (TGRW).
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