Active ETFs are punching well above their weight in 2026. Despite representing just 12% of total ETF assets, actively managed funds have captured 40% of year-to-date flows, Todd Mathias, head of North America ETF product strategy at Franklin Templeton, told attendees at an April 27 roundtable discussion at the firm’s Manhattan office.
Key Takeaways:
- Active ETFs took 40% of flows despite holding ...
The narrative around active ETFs in 2026 presents a compelling case for the resurgence of active management, but it also warrants scrutiny. The strongest version of this argument highlights genuine market dispersion—half the S&P 500 underperforming despite sector strength—as evidence that passive strategies may be missing opportunities. Franklin Templeton’s projections of explosive growth in active ETF assets ($22 trillion by 2040) are ambitious, but they align with broader trends favoring flexi...