Last year, active exchange-traded funds set more records as they continued to gobble assets. They took in roughly $475 billion, or about one-third of all ETF inflows. Here’s a look at the active ETFs that have hit the market and Morningstar analysts’ radar. We now rate more than 180 active ETFs.
Last year, close to 1,000 active ETFs launched, accounting for 35% of the roughly 2,800 US-domiciled active ETFs. To put that in perspective, only roughly 150 passive ETFs were launched in 2025, bringing the total of US-domiciled passive ETFs to about 3,500. Meanwhile, just 95 traditional mutual funds launched last year. Active ETFs still have a long way to go to catch mutual funds, of which there are more than 6,300 US listed strategies, but when it comes to new launches, active ETFs are asset managers’ vehicle of choice now.
Short-term, trading-oriented ETFs, in particular, exploded last year. More than 340 of them launched in 2025, all of which fell into a subset of the trading Morningstar Category (either leveraged equity, inverse equity, or miscellaneous). These strategies typically offer extreme exposures, like twice the daily return of the stock Coinbase COIN, a cryptocurrency exchange.
Among broad asset classes, equity and other, which includes short-term-oriented strategies, recorded more than 400 launches.
In 2025, three firms launched more than 50 ETFs—Graniteshares with 71, Themes ETF Trust with 63, and Defiance with 59. These firms led short-term-oriented strategy launches. Several large asset managers also continued to launch active ETFs, including State Street, T. Rowe Price, and BlackRock’s iShares. State Street rolled out several derivative-income versions of its Select Sector SPDR ETFs. T. Rowe Price launched nine equity strategies and four fixed-income funds. BlackRock launched several buffer ETFs, which allow investors to participate in some of the market’s upside while protecting losses up to a certain point, known as the buffer. For example, an ETF with a 12 buffer would shield investors from losses of up to 12%. If the market fell more, investors would incur the difference between the buffer level and the actual loss.
Morningstar analysts started covering three 2025 launches, including Brown Advisory Sustainable Growth ETF BASG and Harbor Mid Cap Core ETF EPMB, which were both versions of similar strategies offered in different vehicles.
The top 25 active ETFs vacuumed up roughly one-third of the nearly $475 billion in active ETFs’ 2025 inflows. Five of JP Morgan’s ETFs made it in the top 25, including its two popular equity-income ETFs. JPMorgan Nasdaq Equity Premium Income ETF JEPQ and JPMorgan Equity Premium Income ETF JEPI, two of the oldest offerings in the derivative-income category, continued raking in money. BlackRock’s iShares US Equity Factor Rotation ETF DYNF, which was 2024’s most popular active ETF, took top place again this year, with more than $13 billion in inflows, in part because the ETF is included in several of the firm’s target-date and model portfolios, which the firm makes available for advisors to implement for their clients. As artificial intelligence continued to fuel market gains, BlackRock’s iShares A.I. Innovation and Tech Active ETF BAI, led by veteran manager Tony Kim, took in more than $7 billion. Three of American Century’s Avantis ETFs took in more than $15 billion, including one emerging-market fund and two international funds, each of which benefited from strong returns in those markets.
Large-blend, ultrashort bond, and derivative income Morningstar Category active ETFs took in roughly one-third of all 2025 active ETF inflows.
Six firms—J.P. Morgan, Capital Group, Dimensional, iShares, American Century, and Fidelity—took in roughly 50% of all 2025 active ETF inflows.
Not all active ETFs thrived, though. About 150 merged or liquidated in 2025. There will be more, as many newly launched offerings have struggled to gather assets. Five strategies, including ARK Innovation ETF ARKK, had more than $1 billion in outflows each.
Active ETFs’ ability to limit capital gains makes them great candidates for taxable accounts. Morningstar analysts now rate more than 180 of them, including the higher-rated picks below.