The past five weeks have been historic for the NYSE Active Proxy Structure with a record four new ETFs launching with the wrapper. Nuveen brought its first three active ETFs to market using the NYSE structure and American Century added another. Overall, the NYSE Active Proxy Structure now has nine ETFs in market across large-cap, mid-cap, small-cap and multi-manager strategies.

Meanwhile, the active ETF market saw $3.1 billion in new cash flow for the month of July. While this is down from last July’s total ($6.0 billion) and represents the lowest level since an outflow recorded in March 2020 (-$5.5 billion), year-to-date (YTD) active ETF cash flow now totals a record $65.2 billion. At 12% of record YTD cash flow for the entire ETF industry ($528 billion), the active ETF market continues to exceed its roughly 3% market share.

In July, cash flow was led by domestic equity ETFs ($2.4 billion) and a set of strategies focused on providing access to higher yielding preferred and senior loan securities ($1.5 billion). At the same time, domestic fixed income (-$0.4 billion) and int’l./global equity ETFs (-$1.1 billion) saw outflows driven by a select number of short duration strategies (-$0.8 billion) and a subset of ARK’s suite of thematic ETFs (-$1.7 billion).

Activity Continues Across the New Active ETF Market

In January’s update, the NYSE analyzed the early successes of semi-transparent ETFs, covering the market’s rapid rise to over $1 billion in assets under management (AUM), early product diversity and well-functioning secondary markets. There’s been no shortage of market news in the half year since then, including 21 new product launches, 6 new asset managers entering the market, and 10 asset managers making public filings disclosing their intention to enter the market.

Most Recent Launches

American Century: On July 1, American Century launched its third active ETF: American Century Sustainable Growth ETF (NYSE Arca: ESGV). It joins the two strategies from American Century (NYSE Arca: ESGA & MID) that launched in July 2020 and use the NYSE Active Proxy Structure.

Nuveen: On August 5, Nuveen launched its first active ETFs: Nuveen Dividend Growth ETF, Nuveen Winslow Large Cap Growth ESG ETF and Nuveen Small Cap Select ETF (NYSE Arca: NVDG, NWLG & NSCS). All three ETFs use the NYSE Active Proxy Structure.

New Market Entry and Product Announcements

FMI: On May 5, asset manager FMI filed for relief to launch one active ETF using the NYSE Active Proxy Structure. The initial ETF, FMI Large Cap ETF, will be the firm’s first ETF and will use a fundamental value approach for security selection.

Cambiar: On May 10, asset manager Cambiar filed for three active ETFs using ActiveSharesSM. The ETFs, Cambiar Large Cap, Small Cap and SMID, will be the firm’s first ETFs and will use a fundamental, relative value approach for security selection.

Nuveen: On July 7, Nuveen filed to expand its active ETF lineup to include the Nuveen Growth Opportunities ETF. The ETF will use the NYSE Active Proxy Structure and will be the firm’s fourth ETF using the structure.

Hartford: On July 16, ETF issuer Hartford filed to launch an ETF using the Fidelity Active ETF Methodology. The ETF, the Hartford Large Cap Growth ETF, will be sub-advised by Wellington Asset Management Company.

John Hancock: On July 16, ETF issuer John Hancock filed for relief to launch an ETF using the Fidelity Active ETF Methodology. The ETF, John Hancock US Equity Fund, will seek the long-term growth of capital.

Previously Filed: BlackRock Future FinTech ETF, Gabelli ETF Suite, JPMorgan Large Cap Growth ETF, Goldman Sachs Multi-Asset Income ETF, Capital Group, Charles Schwab -- Schwab Ariel ESG ETF, Nottingham -- Spinnaker Mid-Cap Alpha ETF.

Additional Insights on the Active ETF Market