Overview
Demand for active exchange-traded funds (ETFs) has grown significantly in recent years. Global assets under management reached US$ 689 billion at the end of 2023, which is a sharp increase from only US$ 111 billion at the end of 20181. This growth is likely to continue, with 72% of investors globally planning to increase their active ETF allocation in the next 2-3 years, according to the Global ETF Investor Survey 2024 by Trackinsight1. Despite the growth, we understand that some misconceptions about active ETFs still persists. For this reason, we have created this manual to serve as an educational resource.
Introduction to active ETFs
What is an active ETF?
When looking at active ETFs, it is first important to note that terms such as “ETF”, “passive” and “index” are not synonymous. ETF simply means exchange-traded fund, which means an ETF is traded on an exchange regardless of the investment strategy used.
A variety of “engines” or strategies can therefore be placed in the ETF structure to leverage its features.
“Active” refers to specific investment decisions, which are designed to achieve specific outcomes, such as outperforming an index (alpha), generating income, or achieving control in terms of duration, yield or credit quality.
An active ETF provides access to these specific outcomes, all while maintaining the attributes of the ETF structure.
The ETF is a wrapper and the content itself is independent of the vehicle
Active ETF overview
Demand for active ETFs
We look at the ways active ETF adoption has soared.
Demand for active ETFs is growing
Types of active ETFs
The first active ETF was launched in 2008. Since then, a lot of innovation has happened in the active ETF market. Active ETFs now cover various asset classes, geographies and strategies. Over the five years leading up to 20231, active ETF assets under management growth has outpaced that of their passive peers.
Active ETF asset growth
Investing in active ETFs
Actively managed ETFs in focus
Getting started
ETFs Explained Series
Enhancing ETF understanding by tackling fundamental to advanced questions about active and passive ETFs.
ETFs Myth Busting Series
Identifying and debunking common misconceptions about active ETFs to enhance investor understanding.
ETF Video Series
Understand and learn more about ETFs through one-minute short videos.
J.P. Morgan Asset Management: Advancing the potential of ETFs
J.P. Morgan ETFs are rigorously designed to push the boundaries of ETF investing so that investors can build diversified, competitively priced portfolios.
J.P. Morgan Asset Management launched its first ETF in 20144 and maiden active ETF in 20165. Since then, we have brought different innovations to the ETF market – from our successful Research Enhanced Index Equity strategies and the launch of the industry’s first active China equity ETF.
J.P. Morgan Asset Management is now one of the largest active ETF providers globally and one of the largest in the UCITS space. We have also been named the “ Best ETF Manager (2024)” by AsianInvestor6. 
Past performance is not a reliable indicator of current and future results.
Whether you are looking to pursue growth, seek income or mitigate risk, our expanding suite of innovative ETF strategies can help achieve your investment objectives.
The full spectrum of our ETF strategies
Provided to illustrate the characteristics of respective ETF strategies, Not to be construed as offer, research or investment advice. The strategies seek to achieve the stated objectives. There can be no guarantee the objectives will be met.
1. Source: Trackinsight. “Global ETF Survey 2024”. Published February 2024.
2. Source: ETFGI as of 26.08.2024.
3. Source: Trackinsight data as of 31.07.2024.
4. Source: J.P. Morgan Asset Management as of 17.06.2014.
5. Source: Rise of Active ETF Market: Active ETFs take centre stage referring to JPMAM’s active ETF evolution. J.P. Morgan Asset Management. (24.07.2024).
6. Source: J.P. Morgan Asset Management is named as Best ETF Manager (2024), Award issued by AsianInvestor. AsianInvestor Asset Management Awards are issued by AsianInvestor in the year specified, reflecting performance as at the previous calendar year end.
7. Source: J.P. Morgan Asset Management as of 31.07.2024.