Active ETFs shoot up, boosted by ARK’s success

The first quarter of 2021 saw a flurry of new ETF launches (+147 ETFs) and strong continued growth in assets (+7.4%). At this rate, the ETF industry is on track to reach the $10tn milestone before the end of the year.

Even though they represent only 4% of assets in the US, Active ETFs grew especially rapidly over the period. Worldwide and for all asset classes, they outgrew passive trackers by a factor of two (+14% vs +7.2%).

ARK swoops investors’ flows 

Among Active ETFs, equity-based strategies generated most of the growth (+29.3%). This could partly reflect the hype around ARK Investment ETFs. ARK ETFs represent close to two-third of the total assets invested in Active ETFs. Over the quarter, the headline-making provider registered significant inflows of $16Bn.

Source: Trackinsight (Q1, 2021)

Investors move away from Gold

Passive Commodity ETFs saw a net decrease of their assets in Q1 2021 (-10.6%). Investors' move away from Gold explains most of this decrease. The SPDR Gold Shares ETP, the largest Gold ETF, representing 35% of the universe's assets, registered $7.5Bn outflows over the first quarter.

Its assets have fallen -10.67% from December 2020 highs. Investors' disinterest in Gold may be due to the stock market recovery during the first quarter.

Source: Trackinsight (Q1, 2021)

As the Gold ETFs outflows show, investors left safe-haven investments and increased exposure to risky assets. This trend is likely to continue over the following quarters. A good resumption of economic growth is expected, and the number of people vaccinated is increasing in developed countries. However, a fear of rising inflation and of a speculative bubble in equity markets could reversed the trend and encourage investors to take refuge in safe havens such as gold.

For more detailed information on Active ETFs and providers, download our 2021 Trackinsight Global ETF Survey.