Advisers pivot toward active ETFs as mutual fund dominance wanes

Nearly 60% of financial advisers now view active ETFs as the primary replacement for existing mutual fund holdings, signaling a structural shift in portfolio construction. According to the 2026 MSCI ETF Intelligence Survey, the transition is driven by a search for strategy efficiency rather than just a change in management.

Corp and Tech·September 15, 2026·reads: 3,536

The survey of 450 advisers across the U.S. and Europe reveals that 71% plan to ramp up their active ETF allocations over the next two years. This appetite for change is reinforced by a willingness to retain current investment managers: 85% of those involved in fund selection are open to moving into an ETF share class of a strategy they already hold.

Advisers are increasingly scrutinizing the underlying mechanics of these products. While 49% of respondents are interested in accessing less liquid or private assets through an ETF, skepticism remains high regarding the structure's suitability for such investments. A significant 62% of advisers cite a mismatch between ETF liquidity and the underlying assets as a primary concern, overshadowing issues like valuation transparency or historical performance.

Value and trade efficiency now dictate the selection process. While 58% of advisers are comfortable paying a premium for difficult-to-access strategies, only 12% are willing to pay extra for core beta. As Jana Haines, Global Head of Index at MSCI, noted, the market is moving past the initial adoption phase, forcing asset managers to prove exactly where the ETF structure adds value versus where its inherent limits lie.