Actives Unlocked The ETF advantage - Page 5


This year has been challenging and most ETF investors expect 2023 to be the same . The ETF buyers we surveyed in partnership with ETF Stream are concerned that rising inflation and tightening monetary policy will continue to impact markets and portfolios . In this new era of greater economic uncertainty , ETFs continue to be the vehicle of choice for many investors .

Despite heightened volatility , the UCITS ETF market has seen over $ 65bn inflows so far this year , as at the end of October , according to data from Bloomberg . And the ETF market continues to innovate with over 200 new UCITS ETF launches in 2022 .
One segment of the market we expect to be one of the next growth areas is active ETFs . While the growth of active ETFs in the US market has already accelerated over the past couple of years , the space is still in its infancy over here . Overall , assets in active ETFs now make up 2 % of the UCITS ETF assets .
Several investor surveys highlight allocations to active ETFs will continue to grow in Europe . Especially in the ESG space , many investors seem to have realised the benefits of combining ETFs and active management to meet their sustainable investing needs . According to J . P . Morgan Asset Management ’ s Future Focus survey , which interviewed 1,000 professional investors across Europe , 51 % are expecting to use active ETFs to gain exposure to ESG opportunities over the next five years .
When investing in active ETFs , it is important to consider the character and capabilities of an ETF provider . Investors should choose to invest with a provider they value and has a proven history of delivering investment expertise and insights . At J . P . Morgan Asset Management , we rigorously design our ETFs to push the boundaries of ETF investing , backed by extensive research , trading and technology resources of one of the world ’ s leading asset managers .
With more than $ 85bn in ETF assets under management globally and a range of over 30 UCITS ETFs to choose from , we offer access to innovative opportunities across equities and fixed income , with a particular focus on active and ESG strategies . It is this combination of investment expertise and ETF know-how that sets our ETFs apart , helping investors to build diversified , active portfolios .
We look forward to continuing to help our clients build resilient portfolios in these uncertain times . With that in mind , as 2022 draws to a close , we hope you will find this survey about market expectations for 2023 as informative and insightful as we did .
Massimo Greco
Head of EMEA Funds J . P . Morgan Asset Management