Active strategies continue to accumulate investor flows, but will it ever be able to flip the script significantly against passive? The ETF Zoo crew this week featured Dave Nadig, President & Director of Research at ETF.com, Mike Akins, Founding Partner of ETF Action; Tony Dong, MSc, CETF, Founder and Owner of ETF Portfolio Blueprint; and Todd Sohn, Senior ETF & Technical Strategist, Strategas Securities.
This discussion centers on the shifting landscape between active and passive ETFs, particularly within the fixed income sector where active management has historically held a strong foothold due to the complexities of managing yield curves and credit. While passive investing recently crossed the 50% market share threshold in the broader market, there’s an ongoing hockey-stick growth trend happening in active flows. Active fixed income is currently keeping pace with passive counterparts and often leads in core categories when specialty products are excluded. The Zoo crew identified two major catalysts for future growth but ultimately concluded that while active strategies will likely dominate new flows and non-traditional income spaces, passive ETFs will maintain their overall dominance unless a major market correction triggers a mass liquidation of long-held, low-cost passive positions.
Don’t miss the full conversation that covers the SpaceX IPO and talks of benchmark indices changing their rules to allow early inclusion of the company, the Corgi cannon of ETF launches, general ETF fund flows shattering records yet again, and more. Tune in here.
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