By Staff Reporter

This month marks a significant milestone for the exchange-traded fund (ETF) industry. Actively managed ETFs have surpassed $1 trillion in assets under management, according to independent research firm ETFGI.

This figure is comparable to the market capitalization of Berkshire Hathaway, the GDP of Saudi Arabia, or the combined value of 121 New York Yankees franchises.

Nate Geraci from The ETF Store believes this segment will continue to expand, driven by a growing interest in innovative active investment strategies.

“It’s fascinating to see active ETFs gaining so much attention, especially in an industry originally founded on passive products,” Geraci shared during an appearance on CNBC’s ETF Edge.

“Most of the inflows are now directed toward more sophisticated strategies that blend passive and aggressive elements.”

He noted that the surge in actively managed ETFs includes products that differ from traditional concepts of active management, such as options-based income ETFs and buffer ETFs. According to VettaFi’s Kirsten Chang, actively managed ETFs now account for nearly 10% of the entire ETF market.

Impact of Tariffs and Market Volatility

In a recent email to CNBC, Geraci expressed his belief that the uncertainty surrounding President Trump’s tariffs will further stimulate interest in these investment vehicles.

“Concerns about concentration risk in market-cap-weighted indices and inflated valuations were already rising. With the added unpredictability from tariffs, the environment seems favorable for active ETFs,” he wrote. “In times of heightened uncertainty and market volatility, many investors and financial advisors prefer having an active manager to guide their investments.”