This is a milestone month for the fund industry traded on exchanges.
According to independent research firm ETFGI, the actively managed ETFs now have more than $1 trillion in assets under management.
This is the market capitalization of Berkshire Hathaway, Saudi Arabia’s gross domestic product, and the value of the 121 New York Yankees franchise.
ETF store Nate Geraci believes it will grow even further due to the desire for a new, aggressive investment strategy.
“It’s interesting for an industry where roots are passively managed products. That’s what the industry was built,” the company’s president told CNBC’s ETF Edge this week. “It’s interesting to see active ETFs getting attention right now.”
Geraci discovered that most of the flow, including the passive and aggressive combination, falls into “a much more whole-body strategy.”
“Looking at the growth in the number of ETFs that are actively managed, these are not necessarily things that I think are traditionally active,” he added. “It’s an option-based revenue ETF, etc. [and] Buffer ETF. ”
According to Kirsten Chang of Vettafi, aggressively managed ETFs now consist of almost a tenth of the ETF industry.
