Issuance of new exchange-traded funds (ETFs) are piling up this year and threatening to overtake 2021’s historic boom as firms bet big on continued growth. The growth of new funds to start the year is particularly interesting because down markets usually cause ETF launches to slow, according to BI’s James Seyffart. “The fact that there were still so many ETF launches in 2022 despite the dismal performance of the stock market generally and growth stocks specifically, it’s a good indication from issuers on their expectation of growth for the ETF market," Seyffart said. Many signs are pointing to sustained ETF growth to carry out the year and this is particularly true of actively-managed funds as market fluctuations encourage stock-picking. “Now that active managers have the ability to shield their IP but still offer the benefits of the ETF wrapper to investors, we expect active launches to continue to grow."

Source: Mint February 15, 2022 03:18 UTC