Asset Managers Discuss Active vs. Passive Strategies in Growing ETF Market

Mid-year data through the end of June indicates that 88% of all new ETFs launched this year were actively managed, according to findings tracked by J.P. Morgan Asset Management. Active ETFs accounted for about 38% of all flows into ETFs at the halfway point of the year, valued at $450 billion. AllianceBernstein noted that the conversation with clients is now focused on how to combine passive core building blocks with active solutions.

The firms suggest that active management can be particularly beneficial for investors interested in themes such as the artificial intelligence ecosystem. J.P. Morgan Asset Management stated that active managers can help identify companies with better valuations amidst overvaluation in sectors like hyperscalers, infrastructure, semiconductors, and energy.