Investment Insights: Where Active ETFs Gain Traction

Why It Matters

This shifts product strategy toward asset classes and strategies where active managers can genuinely outperform, impacting where asset flows concentrate and how managers design and market ETFs. Greater scrutiny on track records means incumbents with demonstrable alpha and corporate access are likely to win distribution.

Summary

The active ETF market saw a surge of launches and asset gathering last year, but UBS cautions the ETF is merely a wrapper—not a cure-all—and success depends on strong active investment IP. Firms with proven track records and corporate access can broaden distribution through ETFs, especially in areas where indexing is weak or benchmarks are meaningless, such as CLO exposures, certain thematic equities and parts of fixed income. Emerging market equities and select enhanced equity strategies also present opportunities where active managers can add value. Investors and fund selectors are increasingly demanding three-year live track records before committing assets to active ETFs.

Original Description

n this Investment Insights interview, ETF Stream speaks to Amanda Rebello, global head of ETF and index fund sales at UBS Asset Management, about where she expects active strategies to gain the most traction as the European active ETF market continues to mature.