Active ETFs Dominate $18.8 Trillion Global Market as Investors Shift from Passive Strategies
The investment landscape has reached a pivotal moment in 2025, with actively managed ETFs capturing a dominant share of global capital flows. Assets under management in these vehicles now exceed $1.5 trillion in the US alone—growing five times faster than passive counterparts. This seismic shift reflects institutional and retail investors' preference for professional oversight amid market concentration and geopolitical uncertainty.
Regulatory changes like SEC Rule 6c-11 have leveled the playing field, granting active ETFs the structural advantages once exclusive to passive products. The wrapper's tax efficiency and tactical flexibility now make it the instrument of choice for navigating divergent monetary policies and mega-cap volatility.