Active ETFs are becoming increasingly mainstream across advisers and investment decision-makers, often usurping traditional open-ended funds, according to the recent MSCI ETF Intelligence survey.
The report, which comprises more than 450 advisers and investment decision-makers, found that roughly 87% of ETF users currently own an active ETF, while 71% expect their usage to rise in the next two years. Just 6% expected their use of active ETFs to decrease.
In fact, it has become the preferred active investment for more than half of respondents (58%), who said an active ETF from a manager they already use would likely displace their existing mutual fund or UCITS holding.
As a result, some 41% of respondents expected to decrease their allocation to mutual funds or UCITS over the next two years. This rises to 62% in the US, where there is a tax advantage to ETFs
For the MSCI team, this indicates advisers remain broadly loyal but can be convinced to change wrappers due to concerns over fees, liquidity and, in the US, taxes.
Liquidity and the ability to trade efficiently also rank among the top priorities for 68% of respondents.
See also: Global active ETF assets increase by more than a third in 2026
The ETF Intelligence survey also found an uptick in allocation to passive ETFs, with 62% of respondents planning to increase allocation in upcoming years.
However, despite broad popularity for the active ETF asset class, the report noted that advisers are becoming more discerning about how and when they use them, and where they fit best.
Thematic and megatrend ETFs saw the greatest demand, with 47% of respondents saying they wanted more choice, followed by alternative investments and active ETFs at 42% and commodity ETFs at 38%.
Some 32% of respondents were interested in emerging market ETFs, with advisers more broadly saying they planned to increase their overseas equity allocation over the next two years.
That said, the report noted a gap in areas such as thematic and emerging markets, where interest in asset management more broadly had outpaced ETF usage. Some 61% prefer active ETFs for thematic strategies compared with 41% who currently use them, while 52% prefer active for emerging markets compared with current usage of 35%.
“The findings point to potential gaps in the market: areas where advisers want greater choice and favour active management, but where current active ETF offerings have yet to meet that demand,” the report said.
However, some respondents noted issues with the asset class. While almost 50% of respondents said they were willing to access less liquid assets through an ETF, just 16% felt private markets were well suited to the structure.
Some 62% of respondents identified a mismatch between the ETF liquidity and its underlying assets as the main reason, followed by valuation transparency (50%) and a lack of track record (44%).
Jana Haines, global head of index at MSCI, said: “What we are seeing is a shift from whether advisers will use active ETFs to where the structure delivers the most value.
“As the ETF market enters a more mature phase, advisers are also asking harder questions about the product’s fit.”
See also: Schroders bolsters active ETF range with two new launches
