According to Morningstar, although active ETFs only account for 2% of active funds and 4% of all ETFs, they took in a surprising 35% of active inflows and 10% of ETF inflows last year. During the first quarter of 2022, these inflows accelerated to $24.6 billion, bringing total active ETF assets past the $300 billion mark for the first time.
Let’s take a look at what active ETFs attracted the most capital during the first quarter along with some up-and-coming funds to watch throughout the year.
See our Active ETFs Channel to learn more about this investment vehicle and its suitability for your portfolio.
Fastest-Growing Active ETFs
- JPMorgan became the most successful active ETF issuer during the first quarter of 2022, thanks to its income-oriented funds.
- Dimensional funds came in a close second with their popular core equity ETFs.
- Capital Group, a newcomer in the active ETF space, also made the top ten list after launching its first six active ETFs in February.
Many investors sought out active ETFs to provide protection from inflation and rising interest rates. For instance, a commodity strategies fund topped the list with $2.2 billion in inflows. Other investors bought ultra-short ETFs to bet against conventional fixed-income securities that could suffer from rising interest rates over the coming year.
The top active ETFs by first quarter 2022 capital inflows include:
| Ticker | Name | Expense Ratio | Assets | Q1/22 Inflows |
|---|---|---|---|---|
| PDBC | Invesco Optimum Yield Diversified Commodities Strategy ETF | 0.62% | $9.9 billion | $2.2 billion |
| JEPI | JPMorgan Equity Premium Income ETF | 0.35% | $10.1 billion | $2.2 billion |
| FTGC | First Trust Global Tactical Commodity Strategy Fund | 0.95% | $5.2 billion | $1.7 billion |
| SRLN | SPDR Blackstone Senior Loan ETF | 0.70% | $9.5 billion | $1.6 billion |
| JMST | JPMorgan Ultra-Short Municipal Income ETF | 0.18% | $3.3 billion | $1.3 billion |
| JAAA | Janus Henderson AAA CLO ETF | 0.26% | $1.4 billion | $825 million |
| DFAC | Dimensional US Core Equity 2 ETF | 0.19% | $15 billion | $817 million |
| FTSL | First Trust Senior Loan Fund | 0.86% | $3.8 billion | $746 million |
| JPST | JPMorgan Ultra-Short Income ETF | 0.18% | $18.6 billion | $661 million |
| COMT | iShares US ETF Trust GSCI Commodity Dynamic Roll Strategy ETF | 0.48% | $3 Billion | $642 million |
Source: NYSE & Morningstar (As of June 7, 2022)
Up-and-Coming Active ETFs
More than 60 active ETFs launched during the first quarter of 2022, raising nearly $2 billion in assets under management. While most of these have been equity funds, they employ a range of different strategies targeting domestic, international, and global equities. Fixed-income funds have also become popular thanks to their potential to generate alpha.
Some interesting recently-launched active ETFs include:
| Ticker | Name | Expense Ratio | Assets |
|---|---|---|---|
| IPDP | Dividend Performers ETF | 0.89% | $18 million |
| TACK | Fairlead Tactical Sector ETF | 0.70% | $100 million |
| DFIS | Dimensional International Small Cap ETF | 0.39% | $89 million |
| DIHP | Dimensional International High Profitability ETF | 0.29% | $236 million |
| OACP | OneAscent Core Plus Bond ETF | 0.79% | $111 million |
Source: Morningstar (As of June 7, 2022)
The Bottom Line
Actively managed ETFs have become increasingly popular over the past year, particularly in fixed-income, sector-specific equities, and international equities. As new funds continue to hit the market, investors should keep an eye on potential opportunities to better position their portfolio to hedge against inflation and rising rates or capitalize on promising sectors.
Take a look at our recently launched Model Portfolios to see how you can rebalance your portfolio.
