According to HANetf’s latest Thematic & Digital Assets Review 94 per cent of investors are set to increase active ETF use, over the next 12 months, and the majority would switch a mutual fund for an ETF.
The firm writes that active ETFs saw significant growth in Europe across 2024, seeing a 68 per cent increase in AUM. Additionally, over two-thirds (68 per cent) of respondents to the firm’s survey said they would consider switching from a mutual fund to an ETF for their active exposure.
Other survey results include:
• The majority (64 per cent) are bullish on the mining and materials theme.
• The majority (38 per cent) expect active to be the largest growth area in Europe over the next five years.
• Manager expertise was cited as the most important factor when selecting an active ETF, followed by performance track record.
Additionally, when asked about the most significant barriers to using active ETFs, the majority (46 per cent) cited limited product availability in Europe. In 2024, HANetf launched four new active ETFs, and writes that it has many more in the pipeline.
Hector McNeil, Co-Founder and Co-CEO of HANetf, comments: “We are delighted to be publishing the latest edition in our series of Thematic & Digital Assets Reviews. These biannual publications contain expert commentary from our fund partners, exclusive survey results, and performance data. The Review is a unique offering, drawing on the collective knowledge and experience of HANetf’s white-label clients from around the world, rather than an in-house only view.
“Of particular note is the increased investor interest in active ETFs. While still a nascent space compared to larger asset classes such as core equity and fixed income, it is rapidly growing – with a 68 per cent AUM increase across 2024. Investors are taking note, with over a third (38 per cent) expecting it to be the largest growth area in Europe over the next 5 years.
“We agree – HANetf is fully leaning into the active ETF space. We already have five active ETFs on our platform, and more in the pipeline. We hope to become leaders in the active ETF space, so that when investors think active ETFs, they think HANetf!”