Active ETFs manage to shine even as mutual funds take a battering (5 min read)
During the first half of 2022, active mutual funds had an outflow of $640 billion globally while active ETFs had an inflow of $51.8 billion. Active ETFs have been benefiting from the overall migration trend from mutual funds to ETFs. Although it is still a relatively small part of the ETF market, the growth has been rapid. Active ETFs allow asset managers to stay “active” while also taking advantage of the structural benefits, such as low fees and tax treatment. Many fund companies have already converted their existing mutual funds into ETFs as a way to grow their business.