Active ETFs recently crossed a watershed moment, Katie Greifeld, reporter and anchor at Bloomberg News, noted recently. Non-passive ETFs now making up approximately 51% of the total U.S.-listed ETF market (4,300), according to Bloomberg Intelligence data. That’s more than twice 2020 levels, when active ETFs represented just 23% of the number of ETFs in the market. The growing popularity of active strategies is unsurprising, given market performance in the last five years. Rapid changes driven by major global events, an increase in volatility, periods of stock and bond correlations, and an evolving macro environment of elevated interest rates created market dynamics not experienced in over a decade. Active strategies generally prove popular during periods of uncertainty and in challenging market environments. The discerning approach to portfolio construction is often a boon as trends change, while flexibility can help keep portfolios current. However, active investments historically have carried hefty price tags, with high management fees cutting into return potential.