What happened
Global ETF market saw record new launches this year, with 2,141 products introduced by end of July, according to ETFGI data.
Active ETFs accounted for over half of new launches, with 1,212 out of 2,141, marking a significant trend toward active management.
In China, 18 active ETFs are awaiting approval, and domestic ETF launches have also been robust, with 266 new products raising 85.406 billion yuan as of September 3.
Why it matters
The shift from passive to active ETFs could redefine investment strategies, offering investors more choice and potentially higher returns through active management within the ETF structure.
Active ETFs combine the benefits of ETFs—transparency, liquidity, and low cost—with active management, potentially attracting both retail and institutional investors seeking differentiated strategies.
The growth of active ETFs may accelerate the transformation of traditional active funds into ETF formats, reshaping the fund industry's competitive landscape.
Key facts
Global ETF new launches hit a record 2,141 in the first seven months of the year, with the US leading at 889, followed by Asia-Pacific (ex-Japan) at 540, Europe at 379, and Canada at 189.
Active ETFs comprised 56.6% of new global launches, totaling 1,212 products.
Global active ETF assets reached $2.5 trillion as of June 30, with a compound annual growth rate of 49% since 2016, versus 22% for the overall ETF market.
Morgan Asset Management predicts global ETF assets could reach $30 trillion by 2030.
In the US, the Roundhill Memory ETF, launched in April, attracted nearly $25 billion, with its top three holdings (SK Hynix, Micron, Samsung) accounting for over 70% of weight.
What to watch next
Watch for the approval and performance of China's first batch of 18 active ETFs, which could set a precedent for the domestic market.
Monitor whether active ETFs continue to gain market share and how traditional active fund managers respond to the competitive pressure.
Observe if technology-focused ETFs, which have been major attractors of capital, sustain their momentum in both US and Chinese markets.