Actively Managed ETF Growth

Active ETFs Dominate March Inflows, Global Growth Surges

Actively managed ETFs (ETFs) have surged in popularity, capturing 90% of net new money flowing into ETFs in March 2026, according to iShares' Q1 2026 flow report. Globally, active ETF sales climbed 70% in the first quarter, indicating a significant shift in investor preference. This trend is reflected in the cumulative net flows into US-domiciled equity funds since 2006, where actively managed ETFs have seen a notable uptick.

The growth of active ETFs is impacting the broader investment landscape. Passive funds, which have traditionally dominated ETF inflows, are seeing a slowdown in growth. Meanwhile, actively managed funds are attracting more assets, with independent RIAs holding roughly $28 billion in active ETF assets in the first quarter. This shift could lead to increased competition among asset managers, with firms like Manulife John Hancock Investments and Ritholtz Wealth Management positioning themselves to capitalize on this trend.

Investors should watch for the following catalysts to gauge the evolution of this narrative: the release of Q2 2026 flow reports from ETF providers, which will provide an update on active ETF inflows; the introduction of new active ETF strategies or products, which could further drive growth; and any regulatory changes that may impact the active vs. passive ETF landscape.