Investors Signal Strong Demand for Next‑Generation ETF Structures and Expanded Investment Strategies: BBH Investor Services 2026 Global ETF Investor Survey

Brown Brothers Harriman (BBH) Investor Services’ 13th annual Global ETF Investor Survey of institutional investors, fund managers, and financial advisors highlights strong enthusiasm for new ETF structures, even as investors refocus on fundamentals to generate alpha amid heightened market volatility. This year’s findings show that 96% of investors plan to increase their ETF allocations over the next 12 months, matching last year’s record‑high level and reinforcing the ETF structure’s central role in portfolios during periods of market uncertainty.

Investors are reshuffling portfolios to accommodate more active ETFs: 53% will reduce index-based ETF allocations, and nearly half will cut index and actively managed mutual funds. With active ETF assets nearing $2 trillion, 94% believe they’ll top $10 trillion within a decade, and 77% expect this milestone in seven years.

“ETF issuers are innovating to meet the evolving needs of today’s investors,” said Tim Huver, Managing Director on the ETF Servicing Team at BBH. “The next phase of ETF product growth will look very different from the prior decade, with greater emphasis on active management, expanded access to new asset classes, and the operational sophistication required to support more complex strategies at scale.”

Appetite for innovation is surging: 82% would consider ETF share classes of mutual funds, while 99% are open to private markets ETFs, signaling demand for broader access and efficiency.

Additional Key Findings

• 63% plan to work with more ETF issuers.
• 65% say ETF issuers stand out with superior client service and support.
• 58% don’t believe tokenization will fundamentally change financial markets.
• 17% intend to invest in cryptocurrency ETFs, though performance outlooks for crypto assets have dropped sharply since last year.
• Investors expect increased allocations to dividend/income (33%), sector/thematic (28%), defined outcome (26%), and money market ETFs (20%).
• Regional trends persist: U.S. leads in ETF adoption, Greater China sees notable growth, and Europe focuses on income, diversification, and risk management amid regulatory shifts.

Industry thought leaders Deborah Fuhr (ETFGI) and Elias Haddad (BBH) provide additional insights on active ETF growth, market trends, and how macroeconomic factors may shape ETF flows in 2026.

The full 2026 Global ETF Investor Survey is available at BBH.com. The survey was conducted by Wakefield Research on behalf of BBH and included 325 professional ETF investors across the U.S., Greater China, and Europe, representing institutional investors, financial advisors, fund management firms, private banks, and wealth management organizations.

About Brown Brothers Harriman (BBH)

Brown Brothers Harriman (BBH) is a global financial services firm known for premium service and specialist expertise. For more than 200 years, BBH has partnered with clients to navigate complexity, innovate with purpose, and succeed in evolving financial markets. Its 6,000 employees serve clients and their investments in more than 90 markets from 18 offices worldwide. As a private partnership, BBH is uniquely structured to put clients first and deliver success that lasts.

BBH Investor Services is a leading provider of asset servicing and operating model solutions to global asset managers and financial institutions. Asset servicing capabilities include custody, global tax services, depositary and trustee services, fund accounting, administration, and transfer agency. Operating model solutions address platform, data, and connectivity challenges across open‑architecture environments, helping clients drive growth, operational efficiency, and resiliency while enhancing reporting and oversight. BBH has been servicing ETFs for over two decades.

References to specific types of securities and asset classes are for informational purposes only and are not intended to be, and should not be interpreted as, investment recommendations.

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