The folks over at FUSE Research have been digging into the latest ETF trends. Most recently they explored scalability in the industry.
Key Takeaways
- Industry Demand vs. Scalability: Active ETFs have high demand, but scalability is not guaranteed.
- Net Flow Trends: From 2022 to May 2024, 72% of active ETFs experienced net flows between $50 million in inflows and outflows.
- Market Competition: Despite fierce competition, 2024 shows promising inflow trends, though it's too early for definitive conclusions.
Impact for Active ETF Fund Managers
Fund managers need to be aware of the scalability challenges and competitive pressures. Understanding net flow trends is crucial for strategic planning and managing client expectations. Insight into current market dynamics can aid in making informed decisions about fund management and growth potential.
