94% of investors plan to increase their use of active ETFs over the next 12 months, while over two-thirds would consider switching from a mutual fund to an ETF for thematic exposure, according to a survey.
The findings from ETF provider HANetf’s Thematic & Digital Assets Review have highlighted a growing preference for ETFs as investors seek greater flexibility, lower costs, and transparency in their portfolios. Thematic ETFs are gaining traction, allowing investors to target emerging trends with a liquid and cost-effective structure, according to the survey.
The survey also showed strong investor sentiment towards key sectors, with 64% expressing a bullish outlook on mining and materials. Additionally, 38% of respondents said they believe active ETFs will be the largest growth area in Europe over the next five years.
Fund selectors: We “can’t afford to ignore” active ETFs
When selecting an active ETF, investors prioritise manager expertise as the most important factor, followed by performance track record. However, limited product availability remains a key challenge, cited by 46% of respondents as the biggest barrier to adoption. To address this, HANetf launched four new active ETFs in 2024, with plans to expand its offerings further shortly.
The review also showcased HANetf’s new investment products, including its physical uranium and copper ETCs and an upcoming range of leveraged crypto products designed to tap into the rising interest in digital assets.
The review also featured insights from industry leaders such as The Royal Mint, Sprott Asset Management, VettaFi and EMQQ Global.
