Active ETFs are becoming core portfolio holdings, Schroders indicates
10 SEPT, 2026
By Joanna Piwko from RankiaPro Europe
Active ETFs have moved well past their original pitch as a cheaper way into active management. According to Schroders' 2026 Global Investor Insights Survey, 94% of investors globally now see a genuine role for active ETFs in their portfolios, with only 6% disagreeing. The conversation has shifted from whether to use them to how to use them most effectively.
That shift matters in the current environment. With markets swinging between volatility and uncertainty, investors want vehicles that let them act fast, adjust positions easily, and still benefit from active decision-making rather than passive tracking.
Cost still matters – but it's no longer the main draw
Lower fees compared with mutual funds remain the single most-cited advantage, named by 70% of respondents among their top three reasons for using active ETFs. But cost savings are no longer the whole story.
Roughly half of investors surveyed pointed to intraday liquidity and the ability to trade at live market prices as a key benefit – something mutual funds, which typically price only once a day, simply can't offer. Another 43% cited stronger secondary-market liquidity relative to mutual funds, while 41% valued the greater portfolio transparency active ETFs provide. 40% said access to active strategies unavailable in mutual fund form was a deciding factor.
How investors are actually using active ETFs
The data points to active ETFs functioning as flexible building blocks rather than standalone bets. Two broad use cases stand out:
- Portfolio construction and diversification – used by 49% of investors, with 42% deploying active ETFs tactically or as satellite positions around a core allocation.
- Operational portfolio management – 33% use them for risk management and 29% for transition management, effectively parking capital while reallocating elsewhere in the portfolio.
Tom Stephens, Schroders' Head of ETFs, summed up the appeal of the structure: "the beauty of ETFs lies in the simplicity of the vehicle and how easily you can use them both strategically and tactically."
Where active management adds the most value
Demand isn't spread evenly across asset classes. Investors say active management earns its keep most clearly in markets that are harder to research or less efficiently priced, including:
- Small- and mid-cap equities (37%)
- Emerging market equities (35%)
- Thematic and sector strategies (34%)
- Liquid alternatives and hedge-fund-style strategies (23%)
In these segments, index-tracking exposure tends to be a blunter instrument, leaving room for active managers to differentiate.
The remaining barriers: track record and transparency
Growth isn't friction-free. 34% of investors flagged limited track records and uncertainty about performance versus traditional active funds as a concern. Close behind, 31% cited a lack of transparency around the active investment process, and 30% pointed to the complexity of derivative-based implementations and questions around trading capacity or liquidity.
These findings suggest the next stage of active ETF growth will hinge less on the wrapper itself and more on managers proving they have a clear, well-communicated investment process – one investors can actually monitor over time.
Source: Schroders Global Investor Insights Survey 2026.
