Monthly Active ETF Monitor

Active ETFs are gaining momentum as investors look for more flexible ways to navigate a market that is becoming harder to own passively.

The 2019 SEC ETF Rule helped spark this shift by opening the door wider for active strategies inside the ETF structure, and the flow data now shows a clear preference for that format.

In the first quarter of 2026, active ETFs attracted $135 billion, while active mutual funds saw $332 billion in outflows.

That trend is supported by a market backdrop with rising earnings dispersion, heavy AI-related capital spending expected in 2026, and equity markets that remain highly concentrated.

For advisors and investors, active ETFs offer a practical mix of portfolio discretion and structural efficiency at a time when stock selection matters more than ever.