As options-based ETFs scale rapidly, active management, index design and derivatives innovation are converging to blur the line between ETFs and structured products, while autocallable and defined outcome strategies expand the toolkit for income and risk-managed equity exposure.
The growth of options-based ETFs is also reshaping the role of active management within the ETF wrapper. Unlike traditional passive ETFs, these strategies rely on decisions around option selection, strike levels and portfolio construction. As a result, active management has become dominant in this segment. Active strategies offer the potential for incremental alpha through stock selection and can help reduce portfolio volatility - Hamilton Reiner, J.P. Morgan AM Hamilton Reiner, CIO of the