Active ETFs are widely used by advisers and are set for further growth, according to MSCI's ETF Intelligence Survey 2026. The survey of 450 advisers across the U.S. and Europe found that 87% already invest in active ETFs, while 71% plan to increase their use over the next two years. Passive allocations are also expected to rise, with 62% planning to increase them. The findings point to substitution as well as new money: 58% said a new active ETF from a manager they already use would most likely replace an existing mutual fund or UCITS holding. Half would switch to an active ETF version of a strategy they already own, and 85% of fund selectors would consider an ETF share class for the same strategy. Thematic and megatrend ETFs drew the strongest demand, cited by 47% of respondents. Forty-five percent expect to broaden equity allocations beyond their home markets, with 39% of that group favoring emerging markets and 24% favoring developed markets. Advisers were more willing to pay a premium for difficult-to-access strategies than for core beta, while 68% ranked liquidity and trading efficiency among their top priorities. Although 49% were open to accessing private or less liquid assets through an ETF, only 16% considered private markets a good fit. Earlier this year, the SEC granted relief allowing broker-dealers to trade ETF shares of multi-class funds, enabling asset managers to operate mutual fund and ETF share classes within one portfolio. Jana Haines, global head of index at MSCI, said advisers are increasingly focused on where the ETF structure delivers value and where its limitations make it unsuitable.