Generally, ETFs are known for having relatively lower fees than other investment products. Costs for investors are weighed down by unique characteristics of the ETF vehicle, such as a one-fee structure, lower expense ratios, and operational innovations.

ETF providers work with market makers to ensure there is sufficient liquidity. Additionally, ETFs feature a unique creation and redemption mechanism that enables issuers to adjust the supply of ETFs, with minimal effect on the underlying holdings.

Actively-managed ETFs have gained in popularity in recent years. Active ETFs inflows in 2024 were 9X all the flows into active ETFs in 2019. This trend underscores the innovative spirit of the ETF industry, as it continues to evolve and present new opportunities for investors.

The ETF structure for fixed income was one of the most consequential developments because it presents investors with a liquid investment vehicle in a market not always known for its liquidity. Active fixed income strategies have also outperformed their passive peers over the long term. 

The 'Five Elements' underscore ETFs' enduring appeal, keeping them central to the evolving investment universe. Our "Guide to ETFs Asia" delivers essential insights and strategies for navigating this dynamic market. Whether you're experienced or new to ETFs, this guide helps you leverage their potential in Asia and stay competitive.