A majority of advisers plan to increase their use of active ETFs, with 71% intending to do so within two years, according to a MSCI survey of 450 advisers in the United States and Europe. Currently, 87% already invest in active ETFs, while 58% say a new active ETF from a manager they already use would most likely displace an existing mutual fund or UCITS holding. The SEC cleared the path in March, letting broker-dealers trade ETF shares of multi-class funds and enabling asset managers to run mutual fund and ETF share classes inside one portfolio. Regarding private markets, advisers are more cautious: only 16% consider private markets a good fit for the ETF wrapper, with liquidity concerns worrying 62% of respondents. Jana Haines, global head of index at MSCI, notes that while passive ETFs remain the foundation of most adviser portfolios, active ETFs are increasingly becoming mainstream.
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