The introduction of the ETF rule has spurred a significant influx of active ETFs, revealing a strong demand for active management within this new structure. Key advantages of ETFs over mutual funds include tax efficiency, lower fees, and greater transparency, aligning with the evolving expectations of investors. Currently, a striking 30-40% of flows are directed towards active ETFs, despite them representing only 5% of the overall market, highlighting a fascinating shift in investment strategies.
