Active ETFs Surge in First Half of 2025 with Record Launches and Inflows

Active ETFs have been gaining popularity, with 295 new launches in 2025's first half, including 205 equity funds. The top 20 ETFs accounted for 35% of total assets, with JPMorgan Active High Yield ETF and T. Rowe Price Capital Appreciation Premium Income ETF being notable launches. Active ETFs have taken in $183 billion in assets during the period.

Title: Active ETFs Surge in 2025's First Half, Driven by Equity Funds and Innovative Strategies

Active ETFs have seen significant growth in 2025's first half, with 295 new launches, including 205 equity funds. This surge in activity reflects the evolving needs of investors and the increasing complexity of ETF structures. According to Morningstar, the top 20 ETFs accounted for 35% of total assets, with notable launches such as JPMorgan Active High Yield ETF and T. Rowe Price Capital Appreciation Premium Income ETF. These funds have taken in $183 billion in assets during the period.

The first half of 2025 has been a pivotal time for active ETFs, with a significant increase in both the number of funds launched and the assets they attracted. Morningstar reports that 295 new active ETFs were introduced, with over two-thirds of these being equity funds [2]. This surge in activity is driven by the growing sophistication of ETF structures and the demand for innovative investment strategies.

Notable among these launches are JPMorgan Active High Yield ETF and T. Rowe Price Capital Appreciation Premium Income ETF. The JPMorgan Active High Yield ETF, which has more than $2 billion in assets, offers investors exposure to high-yield bonds. Meanwhile, the T. Rowe Price Capital Appreciation Premium Income ETF, managed by star manager David Giroux, provides US stock exposure with a covered call overlay [2].

The top 20 ETFs accounted for 35% of total active ETF flows, highlighting the concentration of assets in a few key funds. These funds include JPMorgan’s equity income offerings and BlackRock’s factor-rotation products, which have taken in significant assets. Additionally, the large-blend, ultrashort bond, derivative-income, and large-value categories all took in at least $10 billion in assets, contributing to the overall growth of active ETFs [2].

The rise of active ETFs is not just about quantity but also about quality. The introduction of buffer ETFs, which offer defined outcomes and protect investors from losses up to a certain point, has been particularly noteworthy. These funds allow investors to participate in market upside while mitigating downside risk. For instance, an ETF with a 12% buffer would shield investors from losses of up to 12%, offering a level of protection that was previously reserved for institutional investors [2].

The growth of active ETFs is also reflected in the performance of individual firms. JPMorgan, Dimensional, Capital Group, iShares, and American Century each took in more than $10 billion in assets, accounting for roughly 50% of all 2025 active ETF inflows [2]. This indicates a strong market presence and a high level of investor confidence in these firms.

However, the active ETF landscape is not without its challenges. Three ARK Invest strategies saw outflows in the first half of 2025, losing a total of roughly $1 billion. Additionally, 40 active ETFs were liquidated or merged, highlighting the competitive nature of the market and the need for funds to continuously innovate and adapt to changing investor preferences [2].

In conclusion, the first half of 2025 has been a period of significant growth and innovation for active ETFs. The introduction of new funds, the concentration of assets in top performers, and the rise of innovative strategies such as buffer ETFs reflect the evolving needs of investors. As the market continues to evolve, it is likely that we will see further growth and innovation in the active ETF space.

References:
[1] https://www.etftrends.com/etf-prime/murphy-discusses-market-flows-evolving-etf-landscape/
[2] https://www.morningstar.com/funds/active-etfs-that-led-inflows-during-2025s-first-half
[3] https://en.coinotag.com/solana-sees-record-14-6m-active-addresses-amid-growing-etf-speculation-and-regulatory-developments/