Active ETF recorded a major milestone in April.
Actively managed ETFs are “changing the investment environment.”
Just six years ago, the ETF, which was actively managed, was rare because there were more index tracking ETFs that were passive.
In recent years, however, this year, especially this year, an ETF, an ETF that is built and managed by a portfolio manager, has exploded, rather than passively tracking indexes such as S & P 500.
According to a report from JP Morgan Asset Management, there is an ETF that is more active than the passive ETF that leads to a major surge this year.
JP Morgan’s ETF strategist John Maier and ETF strategist Shannon Ahern’s report found that about 81%of 300 ETFs released in the United States this year are actively managed.
In the last 12 months, there have been 694 new active ETFs, accounting for 84%of all new ETFs. In April alone, 57 active ETFs were introduced.
Strategists said, “From our point of view, the growth of the ETF is a clear sign that the new era of the ETF is focusing on the United States by changing investor preferences as the market environment becomes more complicated.
The most popular type of active ETF
Investors’ needs for active ETFs are obvious by the most popular ETF types. The most issued ETF this year includes a defined result ETF, also known as a buffer ETF. This ETF is often configured to limit the capped downward loss. It shows that many investors have little appetite for the type of volatility we have seen.
In addition, leverage stock ETFs, which are much more dangerous than existing ETFs, are popular. They are probably appealing to those who are looking for alpha in another sector in the market, a difficult market. Leverage ETFs invest in derivatives or options to amplify the benefits or losses of the index. Thus, doubled leverage ETF generates two teams with the benefit of the benchmark, while the three -fold leverage ETF generates three times. However, if the benchmark is reduced, the loss is amplified.
Derivatives ETFs are also gaining popularity along the same line. This ETF uses derivatives, including options and futures, and uses a strategy for increasing the currency or yield.
Finally, digital asset ETFs, such as investing in bitcoin, cryptocurrency, blockchain technology and other digital assets, have soared. Currently, according to JP Morgan, the market has about 100 digital asset ETFs and is waiting for about 75 more approval.
MAIER and AHERN said that these launches are increasing in two different trends, the desire for income, and the decrease in volatility, leverage/station and digital asset strategies.
Derivatives ETFs indicate the most active ETF inflow.
According to JP Morgan, ETF assets increased 0.55% to $ 10.5 trillion over the month of April. In April, about 64%of the ETF inlet of $ 62 billion recorded stocks on ETFs, while 22%entered a fixed income fund.
The inflow was $ 22 billion out of $ 62 billion, and about 85%of the stocks were fixed to stocks and about 11%of them were fixed. At the end of April, Active ETF had an asset of $ 1 trillion.
From April to April, $ 35.7 billion was introduced into the ETF as a whole, and 39%of the flow was active.
Among the active ETFs, derivative income FUDs were the most inflow of about $ 4.5 billion in April. During the year, $ 18 billion has been introduced into derivative income ETFs.
JP Morgan strategists said, “Volatility is a friend of this strategy, and in April, VIX, which reached its peak in April of the age of 52, condemned the volatility of Covid-199 Pandemic and Great Financial CRISIS.
In April, Active Large CAP Value ETFS saw a $ 3 billion trend in April, and a large blend had a $ 2.5 billion inflow. In addition, the active intermediate period was $ 2 billion, and large -scale growth was $ 1.6 billion.
For the same year, derivatives, ultra yacht bonds, big mixes and big values have accounted for about 40%of the activity flow.
