BBH Investor Services highlights growing interest in next-generation ETF structures amid market volatility, pointing to a broader appetite for innovative products.

Investors are reshuffling toward more active ETFs, with 53% reducing index-based ETF allocations and nearly half cutting both index and actively managed mutual funds.

Industry voices from Deborah Fuhr and Elias Haddad provide context on active ETF growth, macro factors, and potential flows shaping 2026.

There is strong appetite for new formats: 82% would consider ETF share classes of mutual funds, and 99% are open to private markets ETFs, signaling broader access and efficiency.

An impressive 96% of investors plan to increase ETF allocations over the next 12 months, reinforcing ETFs as a core component in portfolios during volatile markets.

Regional dynamics show the U.S. leading ETF adoption, with Greater China growing and Europe emphasizing income, diversification, and risk management amid regulatory shifts.

The 13th annual BBH Global ETF Investor Survey shows strong demand for next-generation ETF structures among 325 professional ETF investors across the U.S., Greater China, and Europe, signaling a shift toward more active strategies and broader access to new asset classes.

Investors favor higher allocations to dividend/income (33%), sector/thematic (28%), defined-outcome (26%), and money market ETFs (20%), highlighting a tilt toward income, diversification, and defined-risk themes.

About 58% of participants doubt tokenization will fundamentally change financial markets in the near term, suggesting cautious impact on tokenization trends among ETF players.

Behavioral insights reveal 63% plan to work with more ETF issuers and 65% say issuers provide superior client service, indicating intensified issuer competition and service quality focus.

Active ETF assets are nearing $2 trillion, and a large majority—94%—expect them to surpass $10 trillion within the next decade, with 77% forecasting that milestone within seven years.

The shift toward active strategies is underscored by a reallocation trend away from passive vehicles and toward active ETF products.