Active exchange-traded funds capture one-third of new investor money in first half

Active ETFs have taken in about one third of all new money flowing into ETF products so far this year. This is a notable shift in how people are choosing to invest.

ETFs were originally designed to track market indexes passively. But actively managed ETFs work differently. Fund managers try to beat the market rather than simply follow it.

The growth has been fast. In Canada, active ETFs now make up more than 35% of total ETF assets. In the United States, the figure is around 7%. The number of active ETFs available to investors is also getting close to the number of passive ones.