Assets invested in active exchange-traded funds (ETFs) have reached $32.9 billion—a new record for the asset class.
According to ETFGI, active ETF allocations increased 23% in the last year alone, with net inflows of $8.9 billion in the first ten months of 2015.
A majority of active ETF investments came from the US, with a total of $21.8 billion committed to the asset class. European investors contributed $6.3 billion, while $3.9 billion came from Canada.
Actively-managed products accounted for just over 1% of the broader ETF market, which totaled more than $3 trillion.
Deborah Fuhr, managing partner at ETFGI, said future growth by the active ETF industry is dependent in part on the Securities and Exchange Commission (SEC), as “many asset managers are waiting to see if/when the SEC allows non-transparent active ETFs.” Non-transparent products would be exempt from publishing their holdings every day, which all ETFs are currently required to do.
Meanwhile, ETGI reported that smart beta equity ETFs attracted $53.7 billion in the first ten months of 2015. Although market cap equity ETFs remain the most popular, accounting for $1.8 trillion in assets, demand for strategic products like smart beta and active ETFs is growing at a faster rate, the firm reported.
“Smart beta equity products are growing significantly faster at 39.3% while market cap has been growing at 18.6%,” said Fuhr.
Currently, there are 764 smart beta ETFs and 232 active products in operation globally.
Related: The $3 Trillion ETF ‘Boom’ & Smart Beta’s ETF Domination