Active ETFs Surge in 2025 with New Strategies and Record Inflows

CHICAGO, Ill. — Active exchange-traded funds (ETFs) are gaining momentum in 2025, drawing significant assets and launching innovative strategies. In the first half of this year, 295 active ETFs were introduced, with over two-thirds classified as equity funds.

The growth of active ETFs can be traced back to the SEC’s 2019 Rule 6c-11, known as the ‘ETF Rule,’ which simplified the approval process for these financial products. Major firms like Capital Group, J.P. Morgan, T. Rowe Price, and Invesco contributed to this surge by expanding their ETF lineups.

Among the standout performers, J.P. Morgan launched the JPMorgan Active High Yield ETF (JPHY), which currently holds more than $2 billion in assets. Meanwhile, T. Rowe Price introduced the Capital Appreciation Premium Income ETF, co-managed by renowned manager David Giroux, providing investors exposure to U.S. stocks with a covered call overlay.

Brown Advisory also made waves by launching two new strategies this year, with the Brown Advisory Sustainable Growth ETF attracting close to $500 million. Similarly, the Capital Group’s U.S. Small and Mid Cap ETF has already garnered over $300 million in assets.

In total, active ETFs absorbed $183 billion in assets during the first half of 2025, with the top 20 ETFs capturing more than 35% of this amount. J.P. Morgan’s equity income ETFs were among the largest contributors to this figure, alongside BlackRock’s factor-rotation offerings.

Even with the growth, not every active ETF has thrived; three strategies from ARK Invest saw a collective outflow of roughly $1 billion. Additionally, 40 active ETFs were either liquidated or merged in the same period, highlighting the competitive nature of the market.

As the active ETF landscape evolves, with a variety of strategies and increasing investor interest, it remains to be seen how firms will navigate challenges and continue to innovate.