HANetf head of research Tom Bailey discusses the rapid growth and future of active ETFs, highlighting how global assets in this category are expected to reach $4 trillion by 2030.
Bailey explained the key differences between active and passive ETFs, emphasising that an ETF is simply a fund wrapper, and the investment strategy inside can be either passive or active. He noted that active ETFs have grown significantly, with over a third of global ETF inflows going to active strategies in the first half of 2024. Bailey discussed the unique advantages of ETFs, such as real-time pricing and greater transparency compared to mutual funds, making them increasingly attractive to modern investors.
HANetf currently offers four active ETFs, including its Saturna Al-Kawthar Global Focused Equity UCITS ETF (AMAL), screened for Sharia compliance, and a renewable energy ETF with Guinness Global Investors. HANetf also recently partnered with Harbor Capital Advisors to launch the Harbor Health Care UCITS ETF (LSE:WELL).
Bailey hinted at more active ETF launches by the end of the year, including fixed-income strategies.