96% of Investors To Boost ETF Exposure; Active Market Nears $2 Trillion
96% of surveyed institutional investors expect to increase ETF allocations in 12 months, with two-thirds favoring active over passive strategies as the active ETF market reaches $1.92 trillion and grows 20% annually. Defensive low-volatility ETFs attract 57% of respondents, while 53% and 50% consider private equity and private credit ETFs.
1. ETF Exposure Trends
96% of institutional investors, advisors and wealth managers across the US, Europe and Greater China plan to increase ETF allocations over the next 12 months, reflecting strong confidence despite geopolitical and monetary policy uncertainty.
2. Active vs Passive Strategies
Two-thirds of respondents intend to shift toward active ETF strategies in response to market concentration and volatility, supporting growth in the $1.92 trillion active ETF segment with an expected annual expansion rate of 20%.
3. Defensive Portfolio Positioning
Dividend and income-focused ETFs lead planned increases at 33%, followed by sector and thematic equities at 28%, while 57% of investors prioritize low-volatility or defensive sector ETFs for downside protection.
4. Private-Market ETF Interest
Interest in private-market ETFs is high, with 53% considering private equity wrappers and 50% eyeing private credit, though structural challenges like liquidity management and pricing must be addressed before these products can scale widely.