Deloitte Releases Active ETF Report

A recent Deloitte report titled “Investment managers could unlock a US$11 trillion market opportunity through active ETF growth” highlights the increased opportunities investment managers are finding in the active ETF space. The report notes that between 2021 and 2023 “460 net-new active ETFs were launched, whereas the number of active mutual funds decreased by 260 during the same period.” The report states that these flows are likely due to lower expense ratios for ETFs versus mutual funds. The report offers the following considerations for investment managers looking to enter or expand in the active ETF space:

• Developing a robust authorized participant network
• Selecting custodians with scalable capabilities
• Developing a comprehensive marketing and distribution plan
• Developing talent that specializes in ETFs

The report emphasizes that fund flows into ETFs will likely continue to increase and that managers should consider this demand when contemplating the launch of a new product(s).

Click here to read the Deloitte report on the active ETF market.