The silent majority: How 90% of ETF assets are proactively managed

The rapid expansion of the global exchange-traded funds (ETF) industry continues to reshape the investment landscape, with significant growth and innovation driving new opportunities. In 2025, substantial inflows in the United States, Europe, and Asia highlight ETFs’ central role in portfolios across various strategies. The industry has evolved beyond a simple "active vs. passive" debate; instead, it now encompasses a wide range of approaches that support both broad market access and targeted thematic investments.

Factor-based strategies have gained renewed interest for their ability to enhance diversification through precise exposure adjustments during volatile markets. Despite common misconceptions about passive management, effective index tracking requires rigorous processes and skilled oversight to maintain alignment with benchmarks amidst changing market conditions. Moreover, ETFs offer structural advantages such as cost efficiency and tax benefits while providing transparency through daily disclosures.

As these innovations continue to unfold globally, indexed ETFs are becoming essential tools for delivering consistency and adaptability in complex investment environments. This narrative underscores the proactive nature of index-based investing as it remains foundational to modern portfolio construction.