JPMorgan Surpasses Dimensional: In-Depth Analysis of the Competitive Landscape of the Global Active ETF Market and Development Trends of Active Investment Strategies
I. Core Event Overview and Market Background
1.1 Milestone Event: Shift in Leadership
On January 16, 2026, JPMorgan Asset Management officially replaced Dimensional Fund Advisors to become the world’s largest active ETF issuer. According to data compiled by Bloomberg, the global assets under management (AUM) of JPMorgan’s active ETFs reached approximately
$257 billion
, narrowly surpassing Dimensional’s
$255 billion
[1][2]. This change marks a major turning point in the global active ETF market landscape, and also reflects that the revival trend of active management strategies in the ETF space is accelerating.
Ben Johnson, director of client solutions at Morningstar, stated: “This competition remains tight, and the shift in leadership actually hinges on 2025 capital flows. In this regard, JPMorgan holds a clear advantage. If I were to sum up JPMorgan’s achievement of claiming the top spot in global active ETFs in 2025, I believe it primarily stems from investors’ strong demand for returns and stability.”[2]
1.2 Global Active ETF Market Overview
The current global active ETF market is experiencing an unprecedented period of growth. According to data from ETFGI, as of the end of November 2025, global active ETF assets reached a record high of
$1.86 trillion
, representing a
59.4%
increase from $1.17 trillion at the end of 2024[3][4]. Full-year 2025 net inflows hit a record high of
$581 billion
, far exceeding 2024’s $332 billion and 2023’s $167 billion[4].
The number of active ETFs has also seen explosive growth. Approximately 1,000 new active ETFs were launched in 2025, accounting for 35% of the total number of active ETFs in the U.S. (about 2,800); in contrast, only about 150 passive ETFs and 95 traditional mutual funds were launched in 2025[5]. As of the end of 2025, the number of active ETFs reached 2,741, surpassing the 2,187 passive ETFs for the first time[6].
II. In-Depth Comparison of JPMorgan and Dimensional’s Competitive Strategies
2.1 Differences in Strategic Paths of the Two Giants
JPMorgan and Dimensional have adopted drastically different development strategies in the active ETF space, and these strategic differences directly led to the current shift in leadership.
Dimensional’s Development Path
mainly relies on a
mutual fund-to-ETF asset conversion
strategy. Leveraging its deep accumulation in quantitative factor investing, Dimensional earlier converted tens of billions of dollars in mutual fund assets into ETF shares, quickly establishing a scale advantage. However, this strategy has limitations: its product line is relatively single, with fewer than 50 ETFs in its portfolio, and it is highly dependent on traditional factor investing strategies[2].
JPMorgan’s Development Path
is more diversified. First, JPMorgan achieved scale growth by relying on
derivative-driven innovative products
. Its derivative income products performed particularly well: the JPMorgan Nasdaq Equity Premium Income ETF (JEPQ) has a scale of $34 billion and attracted over $10 billion in inflows in 2025; the JPMorgan Equity Premium Income ETF (JEPI) is also a benchmark for derivative income products[2][5]. Second, with its
rich product line of nearly 160 ETFs
, covering equities, fixed income, alternative investments and other areas, JPMorgan can meet the diverse needs of different investors[2].
2.2 2025 Capital Flows Decide the Outcome
Morningstar’s analysis points out that 2025 capital flows were the key factor for JPMorgan’s overtaking. In that year, investor demand for active ETFs grew significantly, and JPMorgan held a clear upper hand in capital inflows thanks to its product advantages[2].
Specifically, multiple JPMorgan products ranked among the top 25 in annual inflows, with JEPQ and JEPI, as established representatives of derivative income products, continuing to attract large amounts of capital[5]. In addition, JPMorgan also performed well in the ultra-short-term income ETF segment, with JPST reaching a scale of $36 billion and attracting $7.4 billion in inflows in 2025[2].
Notably, while JPMorgan has surpassed Dimensional globally,
Dimensional still leads in active ETF assets in the U.S. market
. This reflects that JPMorgan has a broader global layout, while Dimensional is more focused on the U.S. domestic market[2].
III. Impact on the Competitive Landscape of the U.S. ETF Market
3.1 Market Concentration and Competition Dynamics
The current global active ETF market is characterized by
high concentration
. According to ETFGI data, as of the end of November 2025, Dimensional ranked first globally with $250.07 billion in assets and a
13.4%
market share; JPMorgan followed closely with $244.32 billion and a
13.1%
share; iShares ranked third with $111.39 billion and a
6.0%
share. The top three providers together control
32.5%
of global active ETF assets, while each of the remaining 643 providers holds a market share of less than 6%[3][4].
However, this market landscape is changing. In 2025, six major issuers—JPMorgan, Capital Group, Dimensional, iShares, American Century, and Fidelity—together attracted approximately
50%
of active ETF inflows[5]. The top 25 active ETFs absorbed about one-third of the full-year active ETF inflows[5].
3.2 Evolution of the Competitive Landscape Between Active and Passive ETFs
JPMorgan’s rise marks an important breakthrough for active ETFs in competition with passive ETFs. In the nearly
$14 trillion
U.S. ETF market, the share of active ETFs has
doubled
in less than a decade[2]. Behind this trend is the growing investor demand for active management capabilities, especially against the backdrop of increased market volatility, where alpha generation and risk management have become investment priorities[3].
BlackRock noted in its forecast that global active ETF assets are expected to
increase to $4.2 trillion by 2030
, representing a growth of approximately
126%
from the current level[3]. This forecast implies that active ETFs will continue to erode the market share of passive ETFs in the coming years.
3.3 Deeper Implications of the Shifting Competitive Landscape
JPMorgan’s overtaking of Dimensional has multiple deeper implications for the market competitive landscape:
First, it indicates that
product innovation capability
is the key to winning in active ETF competition. JPMorgan successfully attracted a large number of investors seeking returns and stability through innovative products such as derivative income strategies and alternative income strategies. In contrast, Dimensional’s relatively conservative factor investing strategy is slightly insufficient in differentiated competition.
Second,
brand effect and channel advantages
play an important role in competition. As a top global banking brand, JPMorgan has an extensive customer base and distribution channels, which can effectively drive the sales of its ETF products.
Third,
scale effects
are beginning to emerge. The scale of JPMorgan’s product line of nearly 160 ETFs (more than three times that of Dimensional’s approximately 50 ETFs) provides investors with more choices and also diversifies business risks[2].
IV. Impact on the Development Trends of Active Investment Strategies
4.1 Core Drivers of the Revival of Active Management
JPMorgan’s rise is a microcosm of the revival of active management in the ETF space. The driving forces behind this revival come from multiple aspects:
First, a major breakthrough in the regulatory environment
. In 2025, the SEC approved the first batch of active ETF dual share classes, and more than 30 asset management institutions obtained permission to add ETF shares to their mutual funds[6][7]. This policy change is of great significance: it breaks the limitation that traditional active management strategies can only be issued through mutual funds, allowing investors to convert existing mutual fund shares into ETF shares, and in the future, they can choose between mutual funds and ETFs for the same strategy[6].
Second, changes in investor demand
. In the current market environment, investors’ demand for alpha generation and risk management is growing, and they are no longer satisfied with pure beta exposure. Morningstar analysts point out that the
capital gains limitation capability
of active ETFs makes them an ideal choice for tax-advantaged accounts[5].
Third, accelerated product innovation
. 2025 witnessed the emergence of a large number of innovative products, including derivative income products, buffer ETFs, leveraged/inverse products, AI-themed active ETFs, etc.[5]. These products provide new carriers and expressions for traditional active management strategies.
4.2 Product Innovation Trends in Active ETFs
JPMorgan’s successful competitive strategy reflects several important directions of active ETF product innovation:
The rise of derivative income strategies
. JPMorgan’s JEPI and JEPQ products generate additional income through option-writing strategies, providing investors with substantial cash flow in the current low-interest rate environment[5]. The success of this strategy has triggered industry follow-up, with multiple institutions including State Street launching similar products[5].
The explosion of short-term trading strategies
. More than 340 ETFs with extreme exposure strategies such as leveraged equities and inverse equities were launched in 2025[5]. Although these products do not fall under the category of traditional active management, they have expanded the boundaries of active ETFs and met the short-term trading needs of some investors.
Innovation in buffer ETFs
. Institutions such as BlackRock have launched multiple buffer ETFs, allowing investors to enjoy part of the market’s upside gains while hedging a certain proportion (e.g., 12%) of downside losses[5]. These products combine active management with risk protection, representing a new direction of product innovation.
The rise of AI-themed active ETFs
. BlackRock’s iShares A.I. Innovation and Tech Active ETF (BAI) benefited from the AI boom and attracted over $7 billion in inflows in 2025[5].
4.3 ETF Transformation of Traditional Active Management Strategies
JPMorgan’s rise and the SEC’s approval of ETF dual share classes have created conditions for the ETF transformation of traditional active management strategies. Morningstar predicts that
discretionary active ETFs
will experience explosive growth in 2026, and fund managers specializing in traditional active equity/fixed income selection will gain a foothold in the ETF space[6].
The far-reaching significance of this trend is that it will introduce high-quality active management strategies from traditional mutual funds into the ETF space, providing ETF investors with more diversified choices. Products such as the Brown Advisory Sustainable Growth ETF and Harbor Mid Cap Core ETF are already ETF versions of existing strategies[5].
4.4 Substitution Effect of Active ETFs on Mutual Funds
With the development of active ETFs, their substitution effect on traditional mutual funds is becoming increasingly obvious. In 2025, active ETFs attracted approximately $475 billion in inflows, accounting for one-third of all ETF inflows[5]. This trend may accelerate the migration of mutual fund assets to ETFs.
BlackRock predicts that with the implementation of the ETF dual share class policy, the scale of mutual fund asset migration to ETFs may be considerable, driving ETFs to significantly narrow the asset gap with mutual funds in the coming years[6][7].
V. 2026 Outlook and Investment Implications
5.1 Market Development Trend Forecast
Looking ahead to 2026, the active ETF market is expected to present the following development trends:
First, traditional active management strategies will accelerate their ETF transformation
. With the SEC’s approval of ETF dual share classes, more high-quality mutual fund strategies will launch ETF shares, providing investors with more choices[6][7].
Second, the competitive landscape will become more intense
. Approximately 150 active ETFs were merged or liquidated in 2025, and many new products faced fundraising difficulties[5]. This indicates that intensified market competition will further lead to product consolidation, with resources concentrating on leading products and institutions.
Third, product innovation will continue to deepen
. Innovative directions such as buffer ETFs, derivative income products, and AI-themed products are expected to continue to develop, meeting the increasingly diverse needs of investors.
Fourth, the boundary between ETFs and mutual funds will blur
. The dual share class structure allows investors to flexibly choose between ETFs and mutual funds for the same strategy, which will promote the integration of the two product forms[6].
5.2 Outlook for the Industry Competitive Landscape
In terms of the competitive landscape, the following trends are worth noting:
Head concentration may further increase
. The top 25 active ETFs have absorbed one-third of inflows, and this concentration trend may continue. Institutions with high-quality active management capabilities and innovative products will gain larger market shares[5].
Small and medium-sized institutions still have room to break through
. Although leading institutions dominate, institutions such as Graniteshares, Themes ETF Trust, and Defiance have achieved differentiated competition by focusing on specific strategies (e.g., short-term trading products)[5].
Traditional active management institutions will accelerate their entry into the market
. With the implementation of the ETF dual share class policy, traditional institutions with high-quality active management capabilities such as Capital Group, T. Rowe Price, and American Century are expected to gain larger shares in the ETF space.
5.3 Implications for Investors
For investors, JPMorgan’s overtaking of Dimensional provides the following implications:
First, active ETFs are no longer marginal products
. With assets exceeding $1.86 trillion and record net inflows of $581 billion, active ETFs have become mainstream investment tools.
Second, when selecting active ETFs, attention should be paid to management capabilities
. JPMorgan’s success stems from its excellent product innovation capabilities and investment management capabilities. Investors should focus on the historical performance and strategic advantages of the manager when selecting active ETFs.
Third, cost is still an important consideration
. The management fees of active ETFs are usually higher than those of passive ETFs. Investors need to weigh the potential excess returns brought by active management against the additional costs.
Fourth, pay attention to product innovation dynamics
. Innovative products such as derivative income strategies and buffer ETFs provide new allocation choices for investors, but at the same time, it is necessary to deeply understand the risk characteristics of the products.
VI. Conclusion
JPMorgan Asset Management’s overtaking of Dimensional to become the world’s largest active ETF issuer is a milestone event in the development of the global active ETF market. This change reflects the revival trend of active management in the ETF space, and also reveals that product innovation, brand advantages, and channel capabilities are key to competition.
From the perspective of market competition landscape, the competition between active ETFs and passive ETFs is intensifying, and the market share of active ETFs continues to increase. The top three providers control approximately one-third of the market share, but market competition remains fierce, and small and medium-sized institutions still have room to break through through differentiated strategies.
From the perspective of the development trends of active investment strategies, the SEC’s approval of ETF dual share classes, accelerated product innovation, and changes in investor demand have jointly driven the revival of active management. The ETF transformation of traditional active management strategies will provide investors with more diversified choices, while accelerating the migration of mutual fund assets to ETFs.
Looking ahead to 2026, the active ETF market is expected to continue to grow rapidly, traditional active management strategies will accelerate their ETF transformation, and the competitive landscape will become more concentrated. Investors should closely follow the innovation dynamics in this field, seize investment opportunities, and carefully evaluate the risk-return characteristics of active management strategies.
References
[1] Bloomberg - “JPMorgan Eclipses Dimensional as World’s Biggest Active ETF Firm” (https://www.bloomberg.com/news/articles/2026-01-16/jpmorgan-eclipses-dimensional-as-world-s-biggest-active-etf-firm)
[2] Advisor Perspectives - “JPMorgan Eclipses Dimensional as World’s Biggest Active ETF Firm” (https://www.advisorperspectives.com/articles/2026/01/16/jpmorgan-dimensional-biggest-active-etf-firm?topic=fixed-income)
[3] NASDAQ - “Best-Performing Active ETFs of 2025” (https://www.nasdaq.com/articles/best-performing-active-etfs-2025)
[4] ETFGI - “ETFGI reports that assets invested in the actively managed ETFs listed globally reached a new record of US$1.86 trillion” (https://etfgi.com/news/press-releases/2025/12/etfgi-reports-assets-invested-actively-managed-etfs-listed-globally)
[5] Morningstar - “Active ETFs: 9 Charts on a Record Year” (https://www.morningstar.com/funds/active-etfs-9-charts-record-year)
[6] Morningstar - “6 ETF Investing Predictions for 2026” (https://www.morningstar.com/funds/6-etf-investing-predictions-2026)
[7] FactSet Insight - “2026 Outlook: Converging Forces Shaping Earnings, Capital Markets, Technology and Global Policy” (https://insight.factset.com/2026-outlook-converging-forces-shaping-earnings-capital-markets-technology-and-global-policy)
