Active ETFs continue to thrive and gain popularity, but how will yours stand out?
Global assets under management (AUM) in actively managed ETFs surpassed US $1.48 trillion by mid-2025. With rapid market growth and increasing investor appetite, differentiation has never been more critical.
Schroders, in a piece on active ETFs, notes that “Active ETFs have seen strong recent growth in the European market. In 2024 active ETFs inflows tripled to €19.1 billion and now account for 7.7% of total ETF flows, up from 4.6% in 2023.¹ This upward trend is expected to continue,² fuelled by the ongoing necessity for active investment management to help navigate increasingly uncertain markets.”
Professionals launching ETFs face a key challenge: how do you convince investors that your fund deserves their trust, and their capital?
¹ Morningstar Direct, 31 December 2024.
² Broadridge, April 2025.
Why investors are drawn to ETFs
ETFs provide access to diversified performance with lower relative risk. Investors are seeking smarter, more transparent vehicles that can outperform benchmarks while aligning with long-term strategies. But with so many options available; clarity, credibility, and trust define success.
$1.48trillion +
Global assets under management (AUM) in actively managed ETFs surpassed US $1.48 trillion by mid-2025
96%
of surveyed investors plan to increase their ETF allocations over the next 12 months
27% growth
ETF assets expanded by a record pace in 2024, and are projected to nearly double by 2029
How to attract and retain investors
1. Define your point of difference
Your fund needs more than numbers, it needs meaning. What do you stand for? How does your investment strategy align with emerging investor values?
If your positioning isn’t clear to you, it won’t be clear to your investors.
Pictet’s Cleaner Planet ETF, for example, purposefully seeks long-term capital appreciation aligned to environmental transition. Yi Shi, Client Portfolio Manager at Pictet Thematics, notes that Pictet’s belief that investing in long-term solutions which adapt to a changing planet will help realise this underestimated opportunity.
2. Build brand engagement that earns trust
Your brand is your primary asset. In a bullish, fast-moving market, perception matters most. A credible brand conveying confidence through every detail should support each of your ETF propositions. From naming and messaging to visual identity and campaign conversation, the manner within which you speak, report and refer to your fund is critical.
3. Communicate performance with purpose
Your fund’s story is written in data. But data alone doesn’t persuade. With so much noise, cutting through to what really matters and informing investors with the richness of your human insight is key to clear and concise communication.
Show your process. Illustrate your insights. Make complex financial mechanisms digestible and transparent so investors can see not just what you do, but why it works.
For example, Vanguard communicates around process rather than prediction. Its messaging reframes performance discussion around discipline, long-termism and stewardship. Product pages highlight portfolio rationale and manager philosophy before yield—an intentional structure that humanises data and aligns with investor values.
4. Deliver transparency and clarity
Active ETFs demand clear communication. Investors expect straightforward explanations of fees, structure, and strategy. A transparent tone of voice helps reduce perceived risk and builds long-term engagement.
