Advisers shift to active ETFs, prioritizing value and liquidity

MSCI’s ETF Intelligence Survey 2026, of 450 advisers across the US and Europe, found 87% already use active ETFs and 71% plan to increase their use over the next two years. Passive ETF allocations are also set to grow, with 62% of respondents planning to raise passive ETF exposure.

Fifty-eight percent of advisers said a new active ETF from a manager they already use would most likely replace an existing mutual fund or UCITS holding. Half of respondents were likely to switch to an active ETF version of a strategy they already hold, and 85% of those involved in fund selection were open to an ETF share class of the same strategy.

Demand for a wider set of strategies is rising. Thematic and megatrend ETFs were the most requested exposure, named by 47% of advisers. Nearly half of respondents expect to broaden equity allocations beyond home markets over the next two years; among those advisers, 39% expect a greater focus on emerging markets and 24% expect a greater focus on developed markets.

Trading efficiency and liquidity were top priorities for 68% of advisers, reflecting attention to what ETFs cost to trade as well as to own. On fees, 58% said they would pay higher fees for access to difficult-to-reach strategies, while 12% would pay more for core beta exposure.

Advisers showed caution about using the ETF wrapper for less liquid assets. Forty-nine percent were open to accessing private or less liquid markets through ETFs, but only 16% considered private markets a good fit for the structure. The main concerns were a mismatch between ETF liquidity and underlying assets (62%), valuation transparency (50%) and a lack of track record (44%).

Jana Haines, Global Head of Index at MSCI, commented that passive ETFs remain the foundation of most adviser portfolios while active ETFs are moving into the mainstream. She added that advisers are asking harder questions about product fit and where ETF structures add value or reach their limits.