Demand for active ETFs is growing fast?

As ETF investors increasingly recognise the benefits of active management, flows into active ETFs are surging. In Europe, active UCITS ETF flows hit a new record high of $18.4 billion in 2024. Year-to date active UCITS ETFs have already seen over $6 billion of inflows, while globally, active strategies accounted for 27% of all ETF flows year-to-date (source: Bloomberg, as of 30 April 2025).

To meet this demand, the number of new active ETF launches is expected to increase significantly in the next few years. A majority of institutional investors and fund managers interviewed for the Carne Group’s “Change 2025” report said they expect active ETFs to account for the majority of ETF launches by 2026.

The benefits of active ETFs are clear

Investors are increasingly recognising the benefits of active ETFs, including:

• The potential for enhanced long-term returns;
• The ability to target specific outcomes; and
• The opportunity to better manage portfolio risks.

By connecting you to seasoned investment professionals who actively seek out the most attractive opportunities based on rigorous fundamental research, active ETFs are able to adjust their portfolio positioning as markets shift. While passive ETFs can only react to events as and when indexes are rebalanced, today’s more uncertain markets favour the rigorous security-level research and real-time market analysis that only active strategies can provide.

Take fixed income markets, where active ETFs have the flexibility to take overweight positions in securities and sectors that are most likely to perform well as the economic environment changes, as opposed to passive ETFs, which simply overweight the most indebted issuers. Or active equity ETFs, which give investors the opportunity to allocate to companies based on their long-term earnings potential, not just their market capitalisation.

The flexibility provided by active management can also be advantageous for investors looking to access topical market themes, such as technology and artificial intelligence, or climate change solutions. Active ETFs are able to invest beyond the narrow investment universe dictated by thematic benchmarks, opening up access to a much broader opportunity set. And all these benefits of active ETFs come with the same advantages that you’re accustomed to from the ETF wrapper. Just like passive ETFs, active ETFs offer daily portfolio transparency, intra-day liquidity, efficient pricing and cost-effective access to active research.

Active ETFs by J.P. Morgan Asset Management

The dispersion of returns between active managers means it’s important to choose an active ETF provider with the ability to select attractive securities and manage risk consistently across market cycles. Investors should therefore look for providers with global research resources and a long-term commitment to active management. They should also look for a provider with the capital markets experience and trading expertise needed to manage active ETF portfolios effectively, at all times.

• Invest with an active ETF leader

At J.P. Morgan Asset Management, our ETF business is founded on the belief that active research can help deliver the returns that investors need in today’s complex and challenging markets. Building on our deep active investing heritage, our active strategies have been tried and tested across multiple market cycles. Today, we’re the largest active UCITS ETF manager by assets and by product range, with over $32 billion in assets under management across more than 30 active ETF strategies (Source: Bloomberg, Factset and J.P. Morgan Asset Management, as of 28 February 2025). Quite simply, we offer investors access to deep active expertise, supported by portfolio managers with long-term active investing experience.

• Invest with an active mindset

The key to our active advantage is our commitment to research, with over 80 career equity analysts and more than 70 fixed income analysts constantly seeking out undervalued opportunities in every corner of the world’s stock markets and bond markets. These insights are shared with our portfolio managers on our proprietary investment platform, SpectrumTM, which also provides access to the advanced portfolio management and trading capabilities that bring our research to life in our active ETF portfolios. Just as crucial is our capital markets expertise and deep broker relationships, which allow our ETF portfolio managers to seize active opportunities quickly and efficiently. Altogether, our broad offering of active ETF strategies cover all major equity and fixed income markets, and are designed to help meet a wide range of investor needs, from core portfolio allocations to a regular income.

• Active ETF investing with J.P Morgan

Your portfolio deserves more than to simply following the market—it deserves to lead the way. Whether you’re navigating market volatility or seeking to seize new opportunities, J.P. Morgan’s active ETFs are designed to ensure that your portfolio is always positioned for longterm success. Active management is a core part of our identity and has been for more than a century. Our philosophy is simple: your success is our success. If you’re looking to build a stronger, more resilient portfolio, we’re here to guide you every step of the way. We are the home of active ETFs.