ETF Market Sees Surge in Active Management and Thematic Funds

ETF Market Sees Surge in Active Management and Thematic Funds

The exchange-traded fund (ETF) market is experiencing significant transformations, marked by a notable increase in actively managed ETFs and the introduction of thematic funds targeting emerging investment interests.

Rise of Actively Managed ETFs

In 2024, the global asset management industry reached $128 trillion, with actively managed ETFs gaining prominence. Although these ETFs constitute only 7% of the global ETF assets, their growth rate surpasses that of passive products. In the United States, actively managed ETFs have amassed over $1 trillion, with more than 80% of new launches in 2025 being active funds, capturing 27% of net ETF inflows in 2024. Their appeal lies in combining professional management with the flexibility of traditional ETFs, offering lower fees and ease of trading. Europe is also witnessing growth, with net inflows of $20 billion in 2024, while adoption in Spain remains slower due to tax considerations. Leading asset managers like JP Morgan, Pimco, Fidelity, and Amundi are at the forefront of this segment, introducing innovative products such as the JEPI, the world’s largest active ETF. Additionally, advancements in technology, including artificial intelligence, are enhancing the evolution of active ETFs, solidifying their position as a modern and sustainable investment alternative. Los ETF se desmelenan: la gestión activa llega para quedarse

Emergence of Thematic and Ex-China ETFs

Fund companies are rapidly launching a wave of exotic ETFs to cater to investors’ growing interest in digital assets and speculative investments. These include funds tracking cryptocurrencies like cardano and litecoin, memecoins such as dogecoin and $TRUMP, non-fungible tokens (NFTs) like Pudgy Penguins, and even companies allegedly dealing in alien technology. This trend reflects both investors’ desire for novel investment options and Wall Street’s strategic move to capitalize on retail investors’ “boredom.” Enhanced regulatory openness under the current administration has facilitated the introduction of new ETFs tied to crypto futures and digital assets. While some industry professionals celebrate this financial innovation, others remain skeptical about the long-term viability and investor demand for such speculative products, cautioning that exuberance could mislead inexperienced investors and potentially tarnish the broader ETF industry’s reputation. Fund firms court ‘bored’ investors with flurry of exotic ETF launches

In response to geopolitical tensions and investor concerns, Vanguard has filed for a new ETF focusing on emerging markets while excluding China. The Vanguard Emerging Markets ex-China ETF aims to provide substantial exposure to companies in Taiwan and India, which together constitute nearly 60% of the index. This move aligns with a broader trend of managing Chinese investments separately from other emerging markets, offering investors options to minimize exposure to China while maintaining emerging market investments. Vanguard files for new ex-China emerging markets ETF

Political Influence on ETF Offerings

Political dynamics are also shaping the ETF landscape. Trump Media & Technology Group (TMTG), the operator of Truth Social, has filed an application with U.S. regulators to launch the “Truth Social Bitcoin ETF.” Managed by Yorkville America Digital, the proposed fund aims to hold bitcoin directly and be listed on the NYSE Arca exchange. This initiative is part of a broader push by the Trump administration to promote digital assets, including reversing previous crypto regulations and supporting digital currency firms. Despite past skepticism, the Trump family now endorses digital assets, hosting events for major holders of the $TRUMP memecoin and planning to build a bitcoin treasury using $2.5 billion in planned fundraising. However, experts remain skeptical about the fund’s long-term potential due to the already crowded market dominated by firms like BlackRock and Fidelity. Trump Media seeks to launch ‘Truth Social bitcoin ETF’

These developments underscore the dynamic nature of the ETF market, driven by investor demand for innovative products and influenced by political and regulatory environments. As the landscape continues to evolve, investors are presented with a diverse array of options to align their portfolios with emerging trends and personal investment philosophies.