Management activates a major trend for 2021



IIt’s been a huge year for the ETF industry with the launch of a record number of new funds, record asset flows and some of the biggest companies converting their mutual fund strategies to ETFs for the first time. . The year was marked by many index outperformances in the first half of the year, but as volatility increased the attractiveness of active management continued to grow with the launch of increasingly active and increasingly active ETFs. more flows going to actively managed funds, reports Barron’s.

This year, ETFs have raked in over $ 900 billion in new money, breaking last year’s record of $ 500 billion at the end of the summer. A record 450 new ETFs were also launched this year, and it was the second year in a row that more ETFs were launched than mutual funds. The ETF industry currently has approximately $ 7 trillion in assets under management, compared to $ 20 trillion in mutual funds; At this rate of growth, ETFs are set to overtake the mutual fund market, especially as more mutual funds convert to tax-efficient ETF wrappers.

The one thing that ETFs align more consistently with mutual funds is the preference for active management by advisers and investors. Of all 450 new ETFs launched this year, almost two-thirds of them were actively managed funds.

Advisors and investors alike are turning to actively managed funds as market volatility and uncertainty continue to emerge as major concerns. Between the introduction of the Omicron threat and the central bank’s regulatory changes, markets have been on the rise during the second half of 2021. Volatility is the kind of environment in which stock pickers and stock pickers are in. active management should shine, with an active fund managers constantly monitor and react to changing market conditions as they occur.

T. Rowe Price is a leading active management company and launched four new ETFs during the year. the T. Rowe Price US Equity Research ETF (TSPA) launched in June, followed by the T. Rowe Price Total Return ETF (TOTR), the T. Rowe Price QM US Bond ETF (TAGG), and the T. Rowe Price Ultra Short Term Bond ETF (TBUX), which all launched in September.

The company brings a wealth of experience and research to its products, with portfolio managers averaging over 20 years of investment each, as well as more than 400 investment professionals dedicated to researching companies within ETFs.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.



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