Active exchange-traded funds are set to take a further share of adviser portfolios. MSCI surveyed 450 advisers, and 71% plan to increase their use within 2 years.

The ETF Intelligence Survey 2026 covered advisers across the United States and Europe. It found that 87% already invest in active ETFs, while 62% plan to raise their passive allocation.

Active ETFs Are Eating Mutual Fund Shelf Space

The MSCI survey points to substitution as much as new money. Overall, 58% said a new active ETF from a manager they already use would most likely displace an existing mutual fund or a UCITS holding.

The manager often stays the same. Half of the respondents would switch to an active ETF version of a strategy they already hold. Among fund selectors, 85% are open to an ETF share class of that same strategy.

Regulators cleared the path earlier this year. In March, the SEC granted the last piece of relief, letting broker-dealers trade ETF shares of multi-class funds. Asset managers can now run mutual fund and ETF share classes inside one portfolio.

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Private Markets Fail the Fit Test

Advisers drew a firmer line on structure. Nearly half (49%) would access private or less liquid assets through an ETF. However, only 16% consider private markets a good fit for the wrapper.

Liquidity explains most of that doubt. A mismatch between the ETF and its underlying assets worried 62% of respondents. Valuation transparency followed at 50%, and a lack of track record at 44%.

Pricing power has shifted as well. In contrast to core beta, which only 12% would pay up for, difficult-to-access strategies drew a fee premium from 58%. Meanwhile, 68% rank liquidity and trading efficiency among their top priorities.

Jana Haines, global head of index at MSCI, framed the change as a question of where the structure works.

“Passive ETFs remain the foundation of most adviser portfolios, but active ETFs are increasingly becoming mainstream. What we are seeing is a shift from whether advisers will use active ETFs to where the structure delivers the most value,” Haines said.

Demand is also moving beyond home markets. Some 45% expect to broaden equity allocations, and among them, 39% favor emerging markets against 24% for developed ones. MSCI did not disclose how the 450 responses were split between the two regions.

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Source: BeInCrypto