Active ETFs Surge to 42% Market Share, BlackRock Leads the Charge

Active Exchange-Traded Funds (ETFs) are gaining traction in the market, with investors pouring $245.2 billion into US-listed active ETFs in the first quarter of this year.

This surge in inflows has led to a significant increase in the dominance of active ETFs, which now account for 42% of every dollar flowing into ETFs, up from 26% in 2024.

The rise of active ETFs is being driven by their ability to offer tax perks and lower fees compared to mutual funds, as well as their flexibility to trade like stocks.

BlackRock and JPMorgan Chase are among the top players in the active ETF space, with BlackRock controlling $3.6 trillion in active assets under management as of June 30.

T. Rowe Price is also a notable player, leveraging its experience in actively managed mutual funds to succeed in the active ETF market.