2024 was certainly a great year for active management, but 2025 could be an even stronger year for active ETFs.
The recently released 2025 Natixis Institutional Outlook Survey examined what institutional investors are expecting for next year’s market. While the survey presented many interesting insights, one theme that proved especially common was the popularity of active management.
Given the somewhat risky and murky macro picture for 2025, institutional teams expect active strategies to shine. Specifically, 70% of respondents to the Natixis Investment Managers survey believe that next year’s markets will favor active management.
Many institutional investors are turning to ETFs to access active strategies. According to the Natixis survey, 46% of respondents expressed plans to increase their use of active ETFs in 2025. As for why, 55% of institutional investors say they do so to help manage their overall risk exposure.
Bolstering one’s portfolio with active ETFs can make a great deal of sense heading into the new year. Compared to passive strategies, an active management team may be in a more adaptable position to excel in eras of uncertainty.
OAKM Offers an Active Solution
Investors seeking to increase their active ETF exposure may wish to consider the Oakmark U.S. Large Cap ETF (OAKM). This actively managed fund aims to deliver capital appreciation through a large-cap value strategy.
As a value strategy, OAKM seeks out large caps with strong potential trading at a notable discount at the time. The fund keeps a 3-5-year time horizon, giving its individual selections plenty of time to play out results.
Even though large-cap equities had a great year in 2024, an actively managed strategy can be a better tool for mitigating risk. This is especially true as conversations continue about overconcentration and potential overvaluation in mega-cap tech stocks. Should the mega-cap bubble burst a bit next year, active strategies can help blunt some potential impact.
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