The Active ETF Boom, Assets Up 600%: Broadridge Report Unpacks the Growth and What Sets Apart Launches that Soar from Those that Stall

By PR Newswire | June 12, 2025, 8:00 AM
  • Active ETF assets are anticipated to grow to $1.2TAUM by 2027 from only $81B in 2019
  • Top 10 active asset managers control 77% of active ETF assets, shedding light on a concentration challenge
  • Only 11% of active ETFs launched in the past three years raised more than $100 million in the first year, a primary indicator for success

NEW YORK, June 12, 2025 /PRNewswire/ -- As active ETF assets have grown over 600% in the past five years to $631 billion in 2024, Broadridge Financial Solutions, Inc. (NYSE: BR), a global Fintech leader, today released a new whitepaper titled "Active ETFs: Achieving Escape Velocity." The whitepaper examines the increased competition within the space and highlights the key strategic imperatives for asset managers looking to launch and scale active ETFs.

"According to our data, 660 active ETFs were launched in 2024, passing record levels, and there is still a significant runway for growth as active ETFs account for only 6% of total active AUM," said Davis Walmsley, Head of US Solutions, Broadridge Data and Analytics. "Despite the favorable environment, success for active ETFs is not guaranteed as a majority of funds fail to eclipse $100 million within the first year and the top managers hold the bulk of the assets. As usage of active ETFs is expected to accelerate among retail investors, asset managers must have a strategic plan in place to ensure a successful long-term launch strategy, equipping financial advisors with the right products to meet investor demand."

According to the whitepaper, there are three key principles that asset managers can adopt to successfully evaluate and leverage active ETFs in the current environment: go with the flow, pick a lane and embrace the concept that less is more.

Go with the Flow

  • Success hinges on robust distribution, particularly within RIA (Registered Investment Advisor) channels, which account for the majority of active ETF assets. Managers must align with the right distributors and tailor outreach to platform-specific dynamics, recognizing that entry barriers are higher in broker-dealer and wirehouse channels.

Pick a Lane

  • Leading managers have thrived by leveraging one or more of the following: unique investment strategies (e.g., innovation, income), proprietary distribution channels, and strong brand identity. While hitting on all three is unlikely, identifying and doubling down on one's inherent strengths is essential.

Less is More

  • Focused engagement with high-potential advisors who already use active ETFs significantly improves conversion and gross sales. By prioritizing advisor scoring and segmentation, managers can better allocate resources and boost early momentum.

Learn more about these trends shaping the global asset management industry from Broadridge's whitepaper. Click here to access Active ETFs: Achieving Escape Velocity.

Many of the insights in this active ETF report are drawn from Broadridge's data, which enables the most comprehensive view of retail and institutional asset distribution. These insights are based on actual investment data and not simply modeled estimates. Broadridge, a trusted partner to asset managers and distributors worldwide, is the authoritative source for market intelligence to help optimize product, strategy, and distribution decision-making.

About Broadridge

Broadridge Financial Solutions (NYSE: BR) is a global technology leader with the trusted expertise and transformative technology to help clients and the financial services industry operate, innovate, and grow. We power investing, governance, and communications for our clients – driving operational resiliency, elevating business performance, and transforming investor experiences.

Our technology and operations platforms process and generate over 7 billion communications per year and underpin the daily trading of more than $10 trillion of securities globally. A certified Great Place to Work®, Broadridge is part of the S&P 500® Index, employing over 14,000 associates in 21 countries.

For more information about us, please visit www.broadridge.com.

Media Contact:

Caroline Wolf

Prosek Partners

[email protected] 

 

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SOURCE Broadridge Financial Solutions, Inc.

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