September 2023


The rise of active ETFs in advisors’ portfolios

State Street Chairman and CEO Ron O’Hanley and Tim Armour, Chairman and CEO of Capital Group, examine the growing demand for active ETFs and their prominence in advisors’ portfolios.

Capital Group is one of America’s oldest investment managers, and one of the fastest growing active managers in the ETF industry. Since launching them, the firm has seen about 7,000 advisors actively buy and sell their ETFs, with nearly 15 percent of that group comprised of new clients ꟷ a promising testament to the growing popularity of this investment vehicle.

Advisors are experiencing big changes in the ways they conduct business, as they have now become active managers of clients’ wealth. Armour remarks on a surge in demand for active management in ETFs: Advisors want to use active ETFs in the core of the portfolios they’re creating for their clients, as this provides them with the prospect of generating better returns at low costs.

Celebrating 30 years of ETF innovation
2023 marks the 30th anniversary of the launch of the industry’s first US-listed exchange-traded fund. Co-created by State Street Global Advisors, the Standard & Poor’s Depositary Receipts ꟷ better known as the SPDR® S&P 500® ETF, or SPY ꟷ revolutionized index investing, liquidity, asset allocation, intermediary distribution, portfolio construction and overall market access.

Today, among the nearly 12,0001 ETFs in existence, SPY is the largest2, most liquid3 and most heavily traded4 ETF in the world. Our ETF@30 video series examines the past, present and future of ETFs ꟷ and their impact on the world’s financial markets and industries.

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