Active ETFs: Bright Spots Beyond the Border

Originally published April 24, 2024

Active ETF strategies have stormed the scene over the past year and are growing at a dizzying pace.

First-quarter net inflows into actively managed ETFs surged past the previous record to $66 billion. That accounts for roughly one third of all first-quarter ETF flows despite comprising a little less than 9% of the entire ETF market.

And the flows show no signs of slowing down anytime soon – with the BlackRock U.S. Equity Factor Rotation (DYNF) and JPMorgan NASDAQ Equity Premium Income ETF (JEPQ) among the more obvious winners to kick off the year.

Riding the Active Wave

Dimensional is the largest active ETF issuer in the U.S. and has been riding the wave of this success. They've taken in more than $10 billion in net flows year-to-date. All 38 of Dimensional’s funds have seen net inflows over the past month and so far for the year. In fact, 14 of the top 50 most popular active ETFs for both the past four weeks and the year have been Dimensional funds.

The company’s largest ETF, the Dimensional U.S. Core Equity 2 ETF (DFAC), boasts more than $27 billion in assets under management, and has seen north of $1 billion alone in net inflows in 2024.