Active ETFs Keep Coming. Selling Them Is Another Story

Core Insights - Active ETFs have seen significant inflows in the first half of the year, nearly matching total inflows for all of 2024, indicating strong demand in the market [1] - Despite the surge in active ETF launches, 71% of ETF issuers report challenges in gaining shelf space at broker-dealers, highlighting a competitive and difficult distribution landscape [1] - The SEC is expected to approve a dual-share-class structure, prompting many fund shops to expedite their ETF offerings, reflecting a proactive approach to market demand [2] Industry Trends - Over 800 US ETFs were launched in the past year, with 86% being active products, and active products accounting for 37% of sales this year, showcasing a shift towards active management in the ETF space [4] - Nearly 90% of ETF issuers are currently focused on developing transparent active ETFs, indicating a trend towards transparency and active management strategies [4] - The influx of new products, including niche strategies, may lead to an increase in ETF closures as asset managers navigate market trends and their areas of expertise [3]