In the latest Investment Insights interview, ETF Stream speaks to Olivier Paquier, global head of ETF sales at AXA Investment Managers, about the rise of active ETFs and what is driving investor demand.
Paquier explains active ETFs combine “the best of both worlds” – offering the transparency, accessibility and diversification benefits of ETFs – alongside the flexibility of active management.
He notes a sharp rise in inflows, with active ETF inflows in Europe nearly tripling year-on-year from 2023 to 2024. “There is a growing appetite and that appetite is not only surging, it is actually exponential every single year,” he says.
Paquier adds that in Europe, active ETFs are gaining traction in areas such as ESG, low tracking error and risk-managed strategies.
Looking ahead, he expects more innovation and deeper product offerings – particularly in fixed income and higher tracking error strategies – as issuers respond to growing demand.
