Index fund dominance faces its biggest test in ages from 2025 stock market
Publishing timestamp: 2025-05-04 11:52:12
Summary
Actively managed equity ETFs are gaining more assets than index fund alternatives due to the rise of younger retail investors, recent market volatility, and the boom in the launch of new active ETFs covering various asset classes. While index funds will still hold the majority of assets, the active tilt in the ETF market is here to stay. The shift towards active ETFs is driven by factors such as tax efficiency, liquidity, and low expense ratios. Investors are advised to focus on long-term investing strategies and not panic trade during market volatility. The rise of younger retail investors is also contributing to the active trading trend, with some taking on risks with leverage and inverse ETF strategies. Despite the growth of active ETFs, passive funds are expected to continue dominating the market, but trends in innovative strategies are likely to continue.
Sentiment: MIXED
Keywords: exchange-traded funds, suppress zephr, s&p 500 index, markets, investment strategy, business news, stock markets, jpmorgan equity premium income etf, nasdaq composite,
Source: https://www.cnbc.com/2025/05/04/index-funds-investors-active-market.html