Investors to Up Active ETF Allocations in '24, '25 | ETF Trends

If 2023 has been the year of active ETF allocations, what about the years to come? Active ETFs have long since proved that they’re more than a trend, but will they keep this renewed momentum? The newest edition of trackinsight’s Global ETF Survey for 2023 may be able to offer some insight. Surveying global investors ranging from asset managers, independent advisors, and family offices, a majority expressed growing support for actives.

Over two-thirds (68%) of survey respondents shared that they had allocated some part of their portfolios to active ETFs. A larger number still said that they had allocated assets to thematic ETFs (74%). Perhaps the biggest takeaway in the survey, however, was that the majority of respondents expect to increase their active ETF allocation in the next two to three years.

See more: “Three Keys to Active ETF Investing in 2023

That support for future active ETF allocations suggests that investors are taking active investing more and more seriously. Active strategies offer managers with significant expertise in their respective areas, able to respond more quickly than index funds. Active strategies focus on outperformance and navigating market uncertainty, whether due to rising rates, inflation, or other macro headwinds.

Part of that interest may stem from active ETFs’ performance so far this year. Active ETFs have topped performance charts so far through 2023, with their managers able to take big swings. In a year that saw, for example, Nvidia (NVDA) spike significantly behind just one earnings beat, swinging for the fences can sometimes really work.

T. Rowe Price offers a suite of active ETFs in its overall ETF roster with a variety of bespoke strategies therein. The firm’s active strategies includes the T. Rowe Price Blue Chip Growth ETF (TCHP) and the T. Rowe Price Growth Stock ETF (TGRW), among other active ETFs. With active ETF allocations possibly rising in the coming years, those and other active ETFs could be worth watching.

For more news, information, and analysis, visit the Active ETF Channel.