‘Inflection point’ for active ETFs: Cboe
Cboe Australia says the past year reflected an “inflection point” for active ETFs with almost 50 active ETFs launched.
In an annual review, the exchange said 2025 saw 47 active ETFs launched and 11 new active investment managers entering the space.
The average management expense ratio was 79 bps for an active ETF.
In terms of asset class, investors allocated a third of flows to domestic fixed income, 27 per cent to international equities, 22 per cent to domestic equities and 11 per cent to international fixed income.
“Investor adoption of active ETFs has begun to accelerate. 2025 was a record year for active managers with 44 active ETFs receiving more than $50 million in annual flows.
“Net flows into active ETFs totalled $6.8 billion for the year, a strong rebound from 2024’s net outflows.”
In total, active ETF assets under management (AUM) grew to $68.8 billion which represented year-on-year growth of $15 billion. This was mostly concentrated in international equities at $38.6 billion with a smaller $13.5 billion in domestic equities and $8.1 billion in infrastructure and property vehicles.
In the case of the last category, Cboe said AUM grew by 175 per cent during the year with $538 million in flows.
International fixed income active ETFs also saw strong growth of 98.8 per cent with $708 million in flows but its AUM is smaller at only $1.4 billion.
Looking at the broader Cboe ETF ecosystem which includes active and passive products, it said AUM grew to $330 billion which reflects year-on-year growth of $73 billion.
Some 130 unique ETFs saw annual flows of more than $100 million and net flows totalled $52.8 billion. A record 73 ETFs were launched with 12 investment managers entering the listed market.
It was announced last November that the exchange had decided to sell the Australian business.
Following a comprehensive review, the firm has stated it is realigning its portfolio of business to sharpen its strategic focus on core strengths and emerging growth opportunities. This includes initiating a sales process for Cboe Australia and Cboe Canada, as well as discontinuing and reducing costs related to listings efforts in the United States and Europe.
“[Cboe Australia] is well-positioned for future growth under new ownership. The business has strong momentum, a talented team, and our performance and track record reflect this.”
