Capital Group: High-growth RIAs driving active ETF adoption

Capital Group sees high-growth RIAs increasingly adopting active ETFs, with Holly Framsted, global head of product, telling a Manhattan media roundtable that RIAs were among the earliest ETF adopters and now use active ETFs for tradability and tax efficiency, according to InvestmentNews. Cerulli Associates data show 953 active ETF strategies launched in 2025, 84% of all new ETFs, while State Street reported record $2 trillion in rolling 12-month U.S.-listed ETF flows, with active ETFs capturing 39% of year-to-date flows. Framsted said Capital Group is the fastest organically growing active ETF issuer, with over $150 billion in ETF assets under management since launching its first active ETF in February 2022.

Active ETFs are moving from niche to mainstream in RIA portfolios, supported by model portfolio adoption and tax-efficient structures. The data suggests high-growth advisory firms are prioritizing time spent on client acquisition over active management, and product innovation from large asset managers like Capital Group is following that demand.