Active ETFs Gain Ground as Advisers Prioritise Value and Liquidity

Active ETFs are becoming a mainstream portfolio tool, with MSCI’s survey of 450 US and European advisers finding 87% already invest in them and 71% plan to increase allocations over the next two years. Growth could come partly at mutual funds’ expense: 58% say new active ETFs from existing managers would likely replace mutual fund or UCITS holdings. Advisers see strongest demand for thematic and megatrend ETFs (47%), while 45% plan greater international equity diversification. Cost alone is not decisive: 58% would pay more for hard-to-access strategies, but only 12% for core beta, while 68% prioritize liquidity and trading efficiency. Private-market ETFs face greater skepticism, with just 16% viewing ETFs as a good structural fit for private assets.