Hands-on fund managers drive ETF growth

Core Insights - The exchange-traded fund (ETF) industry is experiencing a record year, with assets surpassing $1 trillion, largely driven by active managers [1][2] - Active ETFs represent 80% of year-to-date launches, with assets under management increasing by 38%, compared to a 6% growth for passive ETFs [2] - BlackRock anticipates continued growth in the ETF market through 2026, emphasizing the importance of active management in navigating market volatility [3][4] Industry Growth - Active ETFs are leading innovation and inflows in the ETF market, confirming trends observed over the past several years [1] - The balance of new ETF launches includes both fixed income and equities, indicating a diverse investment landscape [2] - Average assets under management for funds aged two to three years are approximately $120 million, while newer funds average around $40 million [2] Market Outlook - BlackRock's U.S. head of equity ETFs expresses optimism for the ETF market, highlighting the potential for active management to enhance investor returns amid market dispersion [4]