Active ETFs Capture 90% of March Flows, Favoring Income and Bond Strategies
Active ETFs captured 90% of net new ETF flows in March, led by funds offering covered-call income and fixed-income mandates. JPMorgan and Capital Group scaled active products like JEPI, JEPQ, CGDV and CGUS, a trend that could aid similar funds such as First Trust TCW Opportunistic Fixed Income ETF.
1. March ETF Flow Surge
In March, active ETFs absorbed roughly 90% of all net new ETF investments, marking a major departure from the longstanding dominance of passive index products. This surge reflects growing investor appetite for differentiated, actively managed strategies within the ETF wrapper.
2. Drivers of the Structural Shift
Enhanced product design and clear positioning have underpinned the active ETF breakout. Funds employing covered-call overlays and multi-manager fixed-income portfolios have delivered competitive yields that resonate with income-seeking investors.
3. Leading Active ETF Offerings
JPMorgan’s JEPI and JEPQ captured the spotlight with equity premium income and Nasdaq-100 exposure, while Capital Group’s CGDV and CGUS leveraged multi-manager equity and dividend strategies. Fixed-income entrants like JPIE have also gained traction by targeting higher relative value in bond markets.
4. Implications for First Trust TCW Opportunistic Fixed Income ETF
The trend toward active mandates bodes well for the First Trust TCW Opportunistic Fixed Income ETF, which uses TCW’s experienced credit team and flexible mandate to pursue yield opportunities. Increased investor interest in active fixed-income ETFs could accelerate asset growth and enhance trading liquidity for FIXD.