Retail ETF adoption is being boosted, according to Fuhr, by platforms that let investors trade stocks and ETFs without paying a commission. That was a substantial adjustment.
Many retail investors find ETFs to be a practical vehicle for expressing their convictions on trends, topics, and other market areas to which they want exposure.
As investors wait for the COVID-19 pandemic to end and take on more risk, active ETFs have grown in popularity, according to Fuhr, who also pointed out that several large companies have recently entered the market with active ETFs.
In its inaugural ETF suite this year, Capital Group unveiled six active ETFs. Among other companies, she said J.P. Morgan Asset Management and Dimensional have been converting mutual funds into ETFs, which are typically more tax-efficient.
Three fifths of the ETFs introduced in the United States in 2021 would be actively managed, according to research by The Financial Times last year based on data from Morningstar Direct.
