Majority of Financial Advisers Plan to Increase Use of Active ETFs in Two Years
A survey conducted by MSCI found that 71% of financial advisers plan to increase their use of active exchange-traded funds (ETFs) within the next two years. The study, which included responses from 450 advisers across the United States and Europe, revealed strong adoption trends for active ETFs—87% already invest in them—and a growing preference over traditional mutual fund structures. Advisers are increasingly substituting existing mutual funds or UCITS with new active ETF offerings. Half of respondents indicated they would switch to an active ETF version of strategies they currently hold, and 58% said such a move is more likely than adding entirely new assets. Regulatory changes earlier this year have facilitated the shift by allowing broker-dealers to trade ETF shares within multi-class funds. Despite enthusiasm for active ETFs, advisers remain cautious about using them as vehicles for private or less liquid markets due to concerns over liquidity mismatches and valuation transparency.
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Topics: active ETFs mutual funds private markets regulatory changes