BlackRock Predicts Active ETFs Will Reach $4 Trillion by 2030 Amid Rising Investor Demand

BlackRock, a leading investment management firm, has made a bullish forecast regarding the future of actively managed exchange-traded funds (ETFs). The company’s analysis predicts that the total assets for these funds will soar to $4 trillion by the year 2030, a substantial increase from the current $900 billion. This projection reflects a growing trend among investors who are increasingly leaning toward active management strategies in response to rising market volatility. Active ETFs are becoming a crucial component of investment portfolios as they offer specialized insights and differentiated strategies.

In the first half of the current year, more than 40% of global ETFs launched were actively managed, a significant rise compared to about 25% recorded just two years prior. Stephen Cohen and Rich Kushel from BlackRock noted that the shift towards active management highlights an inflection point in the asset management industry. They emphasized that this trend is being driven by investors wanting more control over risk and a willingness to embrace the ETF structure to access these strategies. Active ETFs are seeing increased popularity, not only from new offerings but also as they capture a more substantial share of net asset inflows.

BlackRock has also observed impressive growth in the realm of active ETFs across Europe, the Middle East, and Africa, which saw a 25% increase in assets under management by the end of last month compared to the previous year. The report suggests that the acceleration in active ETF adoption can be attributed to various factors, including the overall surge in ETF popularity, the emergence of digital wealth platforms that empower investors, and an ongoing shift towards fee-based investment models. With these developments, the future of active ETFs appears promising, positioning them well for continued growth in the coming years.