Rethinking the ETF: A vehicle, not a strategy

First and foremost, this is a matter of definition. ETFs are still often equated with passive management, even though this view is now widely regarded as outdated. In fact, an ETF is simply a vehicle—a “container” —that can be used regardless of the underlying investment strategy.

What is innovative is not the instrument itself, but with which content it is combined. Active ETFs now make it possible to embed active management strategies in a format previously reserved for index tracking.

This brings the role of the fund manager back into focus: security selection, asset allocation, and risk management, pursued with a clear objective of delivering long-term outperformance relative to an index.

 A rapidly growing market … with a strong need for clarification

The data point to a rapid adoption rate, but there is still considerable room for expansion. According to Morningstar, assets under management in active ETFs in Europe increased from €30 billion in 2023 to just under €77 billion by the end of 2025, with a projected growth to over $1 trillion by 2030.

Along with this momentum, there is a strong need for education. Many investors still view ETFs as the opposite of active management, even though the two approaches are now complementary.

This is precisely where asset management firms come into play: to explain that active ETFs are not a disruption to the distribution framework for active management, but rather an evolution.