Active strategies continue to dominate the ETF landscape, with nearly 80% of new ETF launches in 2024 falling into this category, according to Tidal's Aga Kuplinska. The trend has accelerated in 2025, with derivative-based strategies experiencing particularly strong growth. Tidal itself has been instrumental in this shift, accounting for almost half of over 100 derivative-based ETF launches this year.

Kuplinska notes that while launch costs for simple products have compressed, more complex, derivative-based ETFs remain expensive. The variation in costs depends heavily on the product's complexity and the resources required for development and implementation. This cost differential reflects the growing sophistication of the ETF market and the specialized expertise needed for derivative-based products.

The dominance of active strategies and derivative-based products signals a maturing ETF market that's moving beyond basic index replication. Investors increasingly seek income-generating solutions and sophisticated investment vehicles, driving innovation in product development. This evolution presents both opportunities and challenges for asset managers navigating the changing landscape of ETF offerings.

Quick Fact: Nearly 80% of new ETF launches in 2024 were active strategies.