Best-Performing Active ETFs of 1H25

Actively managed ETFs are experiencing significant momentum, with global assets reaching a new all-time high of $1.39 trillion by May 2025 and year-to-date net inflows hitting a record $220.25 billion. Driven by evolving macroeconomic conditions and a demand for dynamic solutions, this growth signifies a notable shift from traditional passive dominance. Deloitte projects U.S. active ETF assets under management to surge from $856 billion in 2024 to $11 trillion by 2035, indicating their increasing strategic importance and market penetration within the investment landscape.

Analysis

A significant and accelerating capital rotation into actively managed ETFs is underway, signaling a structural shift in investor preference away from purely passive strategies. Global assets in this category reached a record $1.39 trillion as of May 2025, supported by a remarkable surge in year-to-date net inflows to $220.25 billion, which already substantially eclipses the previous annual record of $124.63 billion set in 2024. This trend, driven by investor demand for more dynamic products in a volatile macroeconomic environment, is confirmed by 62 consecutive months of positive inflows. The supply side is responding rapidly, with 363 new active ETFs launched in the U.S. so far in 2025, far outnumbering 55 passive launches. Projections from Deloitte's Center for Financial Services further underscore the long-term nature of this shift, forecasting U.S. active ETF AUM to expand 13-fold from $856 billion in 2024 to $11 trillion by 2035. While established funds like JPMorgan's JEPI and JEPQ dominate in asset size, strong 1H 2025 performance was led by more thematic funds such as ARK Next Generation Internet ETF (ARKW), which gained 31.8%.

Key Decisions for Investors

• Given the powerful secular trend of inflows and projected AUM growth, investors should evaluate increasing strategic allocations to actively managed ETFs to potentially enhance portfolio adaptability in volatile markets.