Where do active ETFs fit in portfolios? Four roles investors value most

Active ETFs Gain Ground as Flexible Portfolio Building Blocks

Schroders’ Tom Stephens examines how investors are using active ETFs to address specific portfolio needs rather than treating them as a separate asset class.

• 49% of surveyed investors value active ETFs for diversification, particularly to add missing styles, sectors, regions or return sources.
• 42% see them as useful for tactical positioning, while 33% highlight their role in reshaping portfolio risks without rebuilding entire allocations.
• 29% value active ETFs during portfolio transitions, where intraday liquidity can help maintain market exposure while longer-term changes are implemented.

Explore the full report to see how active ETFs can support strategic, tactical and transitional portfolio objectives.