Potential for outperformance
Active management offers the potential of outperformance by dynamically adapting to market changes and uncovering the best opportunities, rather than simply tracking an index.
Diversification
Active ETFs can enhance diversification beyond traditional passive core building blocks, aiming for more balanced portfolios.
Flexibility
Active ETFs offer real-time pricing and daily holding transparency, enabling investors to stay informed about their investments while enjoying the liquidity associated with traditional ETFs.
Active ETFs: A growing investment choice
Active ETFs can help meet evolving investor preferences through offering strategies that aim to exceed benchmark performance while enjoying the transparency and ease of access provided by ETF structures.
Given this hybrid benefit, active ETFs have seen strong recent growth in the European market. In 2024 active ETFs inflows tripled to €19.1 billion and now account for 7.7% of total ETF flows, up from 4.6% in 20231. This upward trend is expected to continue2, fuelled by the ongoing necessity for active investment management to help navigate increasingly uncertain markets.
1Morningstar Direct, 31 December 2024. 2Broadridge, April 2025.
Know more about the details of our Active ETFs
Why are people looking beyond traditional passive and active funds for global equities?
Global markets face increasing volatility and geopolitical shifts that may present challenges for index funds. Discover how enhanced index strategies aim to offer a middle ground, seeking to combine market exposure with active management techniques. Watch Lukas Kamblevicius, co-head of QEP Investment team, explain this established approach.
How would a hybrid approach help investors in a volatile bond market?
With 30% of bond pricing factors potentially overlooked by markets, hybrid strategies seek to identify mispricing opportunities. Watch Julien Houdain, Head of Global Unconstrained Fixed Income, explain this approach that combines systematic tools with fundamental research to seek meaningful outperformance.
Why Schroders for active ETFs?
At Schroders, we’ve navigated social and economic change for over 220 years.
Underpinning this longevity has been the ability to meet clients’ needs through innovative and relevant solutions that deliver excellent long-term investment opportunities.
We believe that active ETFs continue this tradition through providing an innovative vehicle for clients to access our proven investment capabilities. This includes deep asset class expertise, exceptional talent and an efficient global operating platform.
Our approach to active ETFs is no different to our other offerings and is built around delivering consistent, long-term growth for our clients. By focusing on the intrinsic value and potential of investments, we endeavour to provide resilient, long-term returns despite market fluctuations.