The rapid growth of active ETFs has opened major opportunities—but also new challenges—for the U.S. industry. According to The Cerulli Report—U.S. Exchange-Traded Fund Markets 2025, 71% of issuers stated that it is difficult to gain shelf space on broker-dealer platforms, and 58% acknowledged the need for better education for financial advisors.
Assets in this type of ETF reached $1.17 trillion in the second quarter of 2025, compared to just $71 billion in 2018. In the first six months of the year, net inflows totaled $197 billion, far exceeding the industry’s expectations.
Growth has been driven by new issuers launching products, mutual fund managers entering the active ETF space, and established issuers expanding their offerings beyond passive strategies.
“Innovation is focused on the transparent active segment,” explained Kevin Lyons, senior analyst at international consulting firm Cerulli. Currently, 87% of issuers are developing this type of product, and 50% plan to convert at least one mutual fund, taking advantage of benefits such as lower costs and greater tax efficiency. The potential introduction of dual-class products is also being explored, pending regulatory approval.
Lyons concluded that future success will depend on issuers’ and managers’ ability to position themselves strategically, strengthen collaboration with wealth management teams, and adapt their distribution structures to the growing demand for active ETFs.
