The explosion of actively managed ETFs in the United States! Last year, the new issuance accounted for as much as 80%, with products like JEPI and other options strategies in high demand
In 2024, among the 727 newly launched ETFs in the United States, 579 are actively managed products, accounting for as much as 80%. Although the scale of active products accounts for about 28%, their number is close to that of passive products. The inflow of funds into active ETFs has reached a record high of $296.5 billion, accounting for 26.4%. Currently, the top ten active ETFs by size include JEPI, DFAC, JPST, etc., indicating a continuous increase in the recognition of active ETFs
According to Shenwan Hongyuan Research, among the 727 new ETFs launched in the United States in 2024, 579 are actively managed products, accounting for 80% of all new products, a slight increase from 76% in 2023. However, due to Bitcoin spot products being passive, the scale of actively managed products is relatively low, at about 28%. The number of active ETFs is now close to that of passive products, while the scale share has risen from around 7% in 2023 to 8.6%.
In addition to the rapid increase in the number of new launches, the rise in the scale share of active ETFs also comes from a tilt in capital inflows. In 2024, capital inflows into U.S. ETFs reached a record $1.12 trillion, with active ETFs attracting $296.5 billion, accounting for 26.4%, indicating a growing recognition of active ETFs.
Currently, the top ten largest active ETFs in the U.S. include JEPI, DFAC, JPST, JEPQ, FBND, etc. (Figure 1) JPMorgan's Covered Call product continues to be the largest active ETF in the U.S. Among bond products, alternative bond types have performed exceptionally well, with noticeable capital inflows. Additionally, the two stock selection products, AVUV and CGDV, which performed well in the previous two years, maintain their leading positions. BlackRock's factor rotation ETF has seen rapid inflows since the beginning of the year due to its outstanding performance in 2023, and it continues to outperform the S&P 500 in 2024, with the vast majority held by institutions.
