MSCI Survey: 71% of Advisers to Boost Active ETF Allocations in Two Years

Active ETFs are poised to capture more of advisers' asset allocations. According to an MSCI survey of 450 financial professionals, 71% intend to boost their active ETF exposure within two years.

The ETF Intelligence Survey 2026, which polled advisers in the US and Europe, indicates that 87% of respondents currently hold active ETFs, and 62% plan to increase their passive ETF holdings.

Active ETFs Displacing Mutual Funds on Adviser Shelves

The MSCI research indicates that much of the growth will come from replacement, not fresh inflows. Some 58% of advisers reported that a new active ETF from a familiar manager would probably replace an existing mutual fund or a UCITS holding.

The underlying manager frequently remains unchanged. Half of those surveyed would switch to an active ETF that replicates a strategy they already own. Within fund selection teams, 85% are receptive to an ETF share class for the same approach.

Regulatory hurdles were removed early this year. In March, the SEC granted the final part of a relief, allowing broker-dealers to transact ETF shares of multi-class funds. Asset managers are now able to operate mutual fund and ETF share classes within a single portfolio.

Private Markets Seen as Poor Fit for ETF Structure

Advisers have stricter views on which assets belong in ETFs. Almost half (49%) are willing to use an ETF to gain exposure to private or less liquid assets, but just 16% regard private markets as appropriate for the wrapper.

Liquidity concerns are the main driver of that skepticism. A potential disconnect between the ETF and its underlying holdings troubled 62% of respondents. Valuation transparency was a worry for 50%, and insufficient track record for 44%.

The ability to charge higher fees has also evolved. While only 12% would pay extra for core beta exposure, 58% are willing to pay a premium for hard-to-access strategies. Separately, 68% list liquidity and trading efficiency as top priorities.

Jana Haines, global head of index at MSCI, described the transition as being about the structure's best applications.

“Passive ETFs remain the foundation of most adviser portfolios, but active ETFs are increasingly becoming mainstream. What we are seeing is a shift from whether advisers will use active ETFs to where the structure delivers the most value,” Haines said.

Interest is also expanding beyond domestic markets. About 45% of advisers anticipate increasing their equity allocations, and of those, 39% prefer emerging markets compared to 24% for developed markets. MSCI did not reveal how the 450 responses were distributed between the US and Europe.