Active ETFs Gain Traction as New Strategies Expand

At an industry asset allocation summit on June 17, 2026, representatives from NEOS Investments and Thornburg Investment Management described rising investor flows into actively managed exchange-traded funds. Panelists said active ETFs represent about 10% of total ETF assets but have seen steady monthly inflows.

Richard Kuhn, head of product and managing director at Thornburg, pointed to product innovation and broader availability of active strategies as key factors. He noted many asset classes that were not previously offered in active form are now available as ETFs. “That combined with the demand that we’re seeing has led to this remarkable growth that we’re seeing,” Kuhn added, and he cited ETF transparency and tax efficiency as features that attract investors.

Wes Matthews, senior managing director and head of investment strategy at NEOS, described how advisors combine low-cost passive exposures with active sleeves designed to meet specific goals. Income generation is a frequent objective, he said, as allocators and model builders look for portions of portfolios that create predictable payouts while keeping market exposure. “We are going to have cheap beta for sure, but we want to be able to have a sleeve or part of our portfolio that generates income,” Matthews noted.

Panelists identified options-based income funds and sector-focused active strategies as areas of recent product development. They said the ETF structure can offer cleaner tax treatment for some income strategies and provides daily transparency that some clients and advisers prefer.

Speakers discussed using active ETFs both as strategic, long-term holdings and as tactical, short-term exposures depending on investor goals. Thornburg described its approach as solutions-based rather than framing the issue as active versus passive, while NEOS emphasized income-oriented active strategies that aim for predictable, tax-efficient distributions.

Other presenters reviewed allocation choices and product lineups. Panelists reported that active ETFs remain a minority of total ETF assets, but their share has increased as issuers add more active offerings and advisors consider where those products fit within multi-sleeve portfolios.