Actively Managed and Outcome-Based ETFs Take Center Stage in 2024

Actively Managed and Outcome-Based ETFs Take Center Stage in 2024

Giang Bui on Nasdaq’s role in the exchange-traded fund landscape.


 

In an interview with etf.com, Giang Bui, Head of U.S. Equities & ETPs at Nasdaq and member of the etf.com editorial advisory board, discussed key trends shaping the ETF landscape in 2024. Bui highlighted the continued dominance of actively managed ETFs, which comprised two-thirds of new launches year-to-date, exceeding even 2023's record pace. 

"Active equity makes up about half of new launches," Bui noted, reflecting investor appetite for professional stock selection in the current market environment. Outcome-based strategies, designed to achieve specific goals like risk management or income generation, remain a significant driver of innovation. 

However, the hottest topic in ETFs this year undoubtedly revolves around Bitcoin. "It's been really exciting to see all the adoption and how well [the bitcoin ETFs] are trading," Bui remarked, emphasizing their operational efficiency and asset accumulation. 

Exchanges Facilitate Investor Access 

Bui also addressed the crucial role exchanges play in ensuring investor access to ETFs. Nasdaq, boasting over 600 listed ETFs with a combined value of $1 trillion, takes pride in supporting issuers throughout the entire product lifecycle. 

"We partner with issuers on ETF education and provide robust liquidity support," Bui explained. This commitment translates to a smooth and efficient experience for investors and financial advisors seeking to incorporate ETFs into their portfolios. 

Nasdaq Selected as Winner for Index Provider of the Year

On a separate note, Bui expressed enthusiasm about Nasdaq's nomination for etf.com's Index Provider of the Year award. "We've been in the index space for over 50 years," Bui said, acknowledging the recognition from a respected industry publication. 

More importantly, Bui emphasized Nasdaq's dedication to supporting issuers who leverage their indexes. "We're excited to be partnering with them to provide access to strategies about emerging themes and cater to investor demand," Bui concluded. 

This conversation underscores the dynamism of the ETF industry in 2024. Actively managed and outcome-based options continue to gain traction, while innovative products like bitcoin ETFs capture investor imagination. With continued exchange support, investors can expect an even more robust and accessible ETF landscape in the years to come.