Why Investors Are Gravitating Toward Active Management In 2023

Active management in ETFs are gaining market share in 2023, as leading managers bring their best ideas into the ETF industry.

As of July 31, 169 active ETFs had launched in 2023, comprising nearly 70% of total ETF launches. (In comparison, active ETF launches made up nearly 63% of all ETF launches last year.), according to VettaFI

Steve Cook, head of ETFs at Harbor Capital, explained the appeal of active management at a panel on VettaFi’s Equity Symposium on September 21.

“This year, more so than the past, you’re seeing uncertainty,” he said. This means that “having strong active bottom-up analysis in that environment … is really important. That’s why folks are gravitating towards active management in 2023.”

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