Active ETF Adoption Among RIAs Is Surging But the Market Is Beginning to Consolidate

Active ETFs are rapidly becoming a core component of portfolio construction among independent RIAs. While passive ETFs have long dominated advisor portfolios, new data shows that actively managed ETFs are gaining traction across portfolios, strategies, and capital allocations.

Analysis of FINTRX data tracking ETF usage across independent RIA portfolios highlights several major trends shaping the market:

• • Advisors are holding significantly more active ETF positions within portfolios
  • The number of unique active ETFs used by RIAs has more than tripled
  • Assets allocated to active ETFs have surged to nearly $400 billion
  • Active ETFs now represent a rapidly growing share of advisor portfolios

At the same time, the data suggests the active ETF market may be entering a more competitive and selective phase, with weaker or less differentiated products beginning to fall away.

Active ETF Assets in RIA Portfolios Are Approaching $400 Billion

The strongest signal of adoption is capital allocation.

In Q1 2021, independent RIAs held roughly $27.7 billion in active ETFs. By Q4 2025, active ETF assets in RIA portfolios had surged to approximately $396.5 billion.

The most dramatic growth occurred beginning in late 2022, when active ETF allocations accelerated significantly. This period coincided with a broader industry shift toward active ETF launches and conversions.

Momentum continued through 2024, when assets held in active ETFs within RIA portfolios climbed from roughly $182 billion to more than $355 billion in a single year.

Although there was a brief dip in early 2025, allocations resumed their upward trajectory and finished the year at their highest level in the dataset.

The data suggests that RIAs are not just experimenting with active ETFs—they are allocating meaningful capital to them.

The Active ETF Universe in RIA Portfolios Has Tripled—But Growth Is Slowing

Over the past several years, the number of active ETF strategies appearing in RIA portfolios has expanded dramatically.

In Q1 2021, independent RIAs collectively held 373 unique active ETFs. By Q4 2025, that number had grown to approximately 1,187 strategies.

This represents more than a threefold expansion in the active ETF opportunity set used by advisors.

The fastest growth occurred between 2021 and early 2024, when the number of active ETFs appearing in RIA portfolios surpassed 1,000 strategies for the first time. This period coincided with a surge in new ETF launches and a wave of mutual fund conversions as asset managers increasingly embraced the ETF structure.

However, the data also shows early signs of market consolidation. After reaching a peak of 1,213 unique active ETFs in RIA portfolios in late 2024, the number of strategies appearing in portfolios stabilized around 1,180–1,200 throughout 2025.

Part of this stabilization reflects advisors narrowing their focus to preferred strategies and providers after several years of rapid experimentation.

But it also reflects a more competitive environment. According to FINTRX data, 59 active ETF tickers that appeared in RIA portfolios during 2025 disappeared from the market entirely, indicating those funds were liquidated or closed.

While innovation and product launches continue, the data suggests the active ETF ecosystem is beginning to mature as advisors and issuers concentrate on strategies that demonstrate clear demand.

Advisors Are Holding Far More Active ETF Positions

The expansion of the active ETF universe has coincided with a sharp increase in the number of active ETFs advisors are using within portfolios.

In Q1 2021, the average RIA portfolio held roughly two active ETF tickers. By Q4 2025, that number had climbed to 17 active ETF positions.

That represents more than an eightfold increase in active ETF usage within advisor portfolios.

The shift reflects a broader change in how advisors are using ETFs. Early adoption often involved a small number of active ETF allocations for specific strategies such as income generation or tactical positioning.

Today, advisors are increasingly incorporating multiple active ETF strategies across portfolios, using them for equity exposure, fixed income strategies, income generation, and tactical allocation.

Rather than serving as niche products, active ETFs are increasingly functioning as modular portfolio building blocks.

Active ETFs Are Taking a Larger Share of Advisor Portfolios

Active ETFs are not only growing in absolute dollars—they are also representing a larger share of total advisor portfolios.

In Q1 2021, active ETFs accounted for 3.24% of RIA portfolio assets. By Q4 2025, that share had increased to 13.45%.

In other words, the portion of advisor portfolios allocated to active ETFs has more than quadrupled over the past five years.

Crossing the 10% allocation threshold in 2024 appears to be an important milestone. Once active ETFs moved beyond a niche allocation, they increasingly became core building blocks within diversified advisor portfolios.

For asset managers, this trend suggests active ETFs are not just attracting new flows but are increasingly taking share from other investment vehicles, including mutual funds and individual securities.

What This Means for ETF Issuers

Taken together, these trends highlight a major shift in advisor portfolio construction.

Independent RIAs are holding more active ETF positions, evaluating a larger universe of strategies, and allocating dramatically more capital to the category.

But the disappearance of dozens of funds also highlights a growing reality: the active ETF market is becoming more competitive and selective.

For ETF issuers targeting the RIA channel, success increasingly depends on:

• • Clear portfolio positioning
  • Strong differentiation
  • Precise targeting of advisors whose investment approach aligns with the strategy

Active ETFs are no longer a niche category within advisor portfolios. They are becoming a central tool advisors use to construct diversified portfolios.

As the category matures, the firms that succeed will be those that combine product innovation with data-driven distribution strategies that identify the advisors most likely to allocate.