Another Strong Start For Active ETFs

Actively managed ETFs continue to gain traction. After a strong 2023, active ETFs gathered 34% of the net inflows in the first two months of 2024. Impressive for an asset category that still represents 6% of overall industry assets.

Active and Passive ETFs

Seven active ETFs gathered more than $1 billion in January and February. The BlackRock U.S. Equity Factor ETF (DYNF) led the charge with $3.2 billion of net inflows. DYNF and one of its siblings, the BlackRock Flexible Income ETF (BINC) benefitted from January model allocation changes made by BlackRock.

Meanwhile, the JPMorgan Nasdaq Equity Premium Income ETF (JEPQ) and the JPMorgan Equity Premium Income ETF (JEPI) pulled in $1.7 billion and $1.1 billion. These two covered call ETFs were popular in 2023 and seem poised for continued growth. According to VettaFi, advisors are increasingly considering implementing covered call strategies.

A Janus Henderson CLO ETF, an Avantis small cap value equity ETF, and a more traditional JPMorgan global equity ETF also gathered over $1 billion.