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    Macquarie ETFs - US ETFs
Macquarie ETFs

Your guide to active ETFs

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US exchange-traded funds (ETFs) have grown significantly in the past five years, with the number of products and  total assets more than doubling, ending 2024 with a  record asset level of $10.4 trillion.1

In addition, the landscape has continued to evolve, from the initial wave of passive strategies, to strategic beta solutions, and now actively managed ETFs.

ETFs by the numbers

$ 10.4 t

in assets

3900 +

products available¹

90 %+

of advisors recommend ETFs²

Explore the guide

Download eBook (PDF)

Explore the guide

Download eBook (PDF)
Chapter 01: ETFs and growth
Chapter 02: ETF evolution
Chapter 03: Active ETF benefits
Chapter 04: ETFs in your portfolio
Chapter 05: Getting started
Chapter 06: ETF trading myths

Chapter 01

ETFs and growth

What is an ETF?

An ETF is an open-end investment fund that trades like a stock during trading hours on an exchange, such as the New York Stock Exchange (NYSE) or Nasdaq Exchange. When you purchase an ETF, you receive shares of the ETF, just like you would with a stock.

An ETF gives you exposure to a group of underlying assets that the ETF holds, similar to a mutual fund. The holdings in which an ETF invests can span a wide range of asset classes, including equities, fixed income, commodities, currencies, and other alternative exposures.

Key benefits of ETFs relative to traditional mutual funds

Transparency

You can generally see portfolio holdings daily.

Trading flexibility

You can monitor an ETF’s price throughout the day when markets are open.

Tax efficiency

The in-kind redemption mechanism can help manage taxes.

Lower cost

ETFs typically have lower expenses and a simple fee structure compared with mutual funds. 

Diverging net flows: ETFs vs. mutual funds

The preference for ETFs can be seen when looking at the growth of ETFs relative to mutual funds in the past decade.

Source: ISS Market Intelligence (Simfund). Data as of January 31, 2025.

Chapter 02

ETF evolution

Innovation has been a cornerstone of the ETF industry, helping investors gain access to new markets, exposures, and investment strategies with ease.

The three waves of ETF product evolution progressed along a spectrum, from passive index-tracking strategies to full active management styles.

The first wave of ETFs was passive, meaning they have an investment objective to replicate or track an index. The first passive ETF, launched in 1993, tracked the S&P 500 Index, for example. Over the next decade, ETF issuers expanded equity offerings to include country-specific (1996), sector (1998), style (2000), and thematic (2001) exposures.

Fast forward to 2002, and the first fixed income ETFs provided exposure to US Treasurys and investment grade corporate bonds. Since the early 2000s, this market has continued to evolve, providing access to sub-asset classes, thematics, and more precise exposures.

 

While strategic beta solutions existed in the 2000s, they became more prominent in the 2010s. Strategic beta, or “smart beta,” ETFs are still passive in that they track an underlying index, but not a traditional market-cap weighted index like the S&P 500 Index. They may track an index that aims to deliver a different outcome than a traditional index.

Examples include ETFs seeking lower portfolio volatility, quality factor exposure, or equal-weighted security allocations. The benchmarks these strategies track can be designed by index providers or custom built by the ETF issuer using insights underpinning more traditional active management. This segment of the ETF market generally uses a quantitative, rules-based approach relative to an index to achieve a differentiated outcome from a traditional benchmark.

The first actively managed ETFs were fixed income only and brought to market during the global financial crisis in 2008. At the end of 2010, there were fewer than 100 active ETFs in the market. A major catalyst for active ETFs occurred in 2019. The US Securities and Exchange Commission (SEC) adopted a new rule to modernize ETFs: rule 6c-11, also known as the “ETF Rule.”

This regulation change, the ETF Rule, opened the door for active management, meaningfully increasing new issuances. The rule streamlined ETF regulations, improved the time to market, lowered costs, and allowed issuers to manage portfolios more flexibly, like traditional, active mutual fund strategies. Since the regulatory change went into effect in 2019, 1,700+ new active ETFs have been brought to market through the end of 2024.

These three waves of product development have provided investors with more options, helping them build better portfolios with lower cost, efficient ETFs.”

Anthony Caruso
Head of ETF Strategy

A look at the growth of the ETF market

Source: ISS Market Intelligence (Simfund). Data as of January 31, 2025.

Chapter 03

Active ETF benefits

Although actively managed ETFs made up only 8% of the ETF market by assets at the end of 2024, they captured 26% of the inflows. This trend, coupled with the continued increase in investment options and investor preference, should help propel growth.

Active ETFs provide access to institutional-quality investment expertise in an efficient vehicle. They are managed by investment managers and analysts who proactively seek investment returns within a chosen strategy, such as domestic equities or municipal bonds. They generally aim to deliver a certain outcome such as alpha, or risk-adjusted outperformance, above the relevant benchmark. Active ETFs can open the door for investors to benefit from professional investment expertise in an efficient ETF wrapper.

With an active ETF, investors can leverage the experience of a professional manager to review the portfolio daily and to make decisions related to asset, sector, and security allocations, the timing of trades, and risk management.

Active ETFs can provide access to an investment philosophy and approach that is similar to what you may get in a mutual fund, but with the added benefits of the ETF structure. The benefits of the ETF vehicle paired with professional management and oversight is an exciting development for investors as they think about how to optimize their investment portfolios.

Comparing ETFs and mutual funds

Chapter 04

ETFs in your portfolio

ETFs can help you create a well-balanced investment portfolio, in line with investment goals, risk appetite, and timeframe. They make it simple to strategically allocate and tactically tilt positions, as needs change or as markets evolve. 

Core allocation
ETFs can be an efficient way to build out a traditional core portfolio, where core diversified investments are held for the long term. Examples could include allocations to emerging markets equities, US large-cap growth equities, and more. The inherent benefits of ETFs can help lower portfolio fees in addition to better managing tax outcomes. 

Tactical positioning
ETFs can be a quick and efficient way to express a view on the markets. For example, let’s say you believe a specific investment style, such as growth or value, will outperform in the near term. Investors can use an ETF to express that view and adjust it when market dynamics change.

Thematic exposure
Thematic ETFs have evolved, taking traditional sector or sub-industry exposures one step further. They can provide targeted exposure to key trends, such as the energy transition, artificial intelligence (AI), electrification, or digitalization.

Managing risk
When assessing a portfolio, ETFs are a tool that can help investors mitigate risks they have identified. ETFs are an efficient way to help with portfolio completion. For example, investors who are overexposed to hyper growth stocks or duration can use ETFs to help balance out exposures.

Tax loss harvesting
With a growing array of asset classes and investment strategies to choose from, ETFs offer possibilities for investors to harvest existing losses and reallocate to ETF exposures with varying degrees of differentiation. For example, an investor who holds an emerging markets equity index fund that has negative returns can sell that allocation and harvest losses, then reallocate into an active ETF managed by a team that may be more skilled at delivering outperformance in emerging markets.

Chapter 05

Getting started

With Macquarie’s growing range of active ETFs, we make it easier for investors to access our investment expertise and flagship strategies.

Our expanding ETF lineup brings together our flagship solutions, which many of our clients are familiar with through our mutual funds and other vehicles, alongside new capabilities that deliver Macquarie’s expertise in real assets.

We have seen advisors use our ETF solutions to address a variety of needs in their clients’ portfolios. In each scenario, the advisor was able to create cost efficiencies for their clients and potentially improve future tax outcomes given the advantages of the ETF structure.

Macquarie Focused Emerging Markets Equity ETF

Ticker: EMEQ | Expense ratio: 0.86% | Inception date: September 4, 2024

Actively managed portfolio of 35-60 emerging markets stocks seeking to capitalize on high-conviction investment ideas

How clients are using EMEQ:

  • Improve portfolio diversification with non-US equity exposure
  • Add exposure to fast-growing economies with attractive structural drivers

Macquarie Focused International Core Equity ETF

Ticker: EXUS | Expense ratio: 0.59% | Inception: June 17, 2025

Seeking opportunities across international markets with a concentrated portfolio with underappreciated long-run earnings drivers at attractive valuations

How clients are using EXUS:

  • Add core, style-agnostic exposure to international markets with an eye on mitigating risk 
  • Invest in a non-US equity strategy that seeks consistent returns – singles and doubles, not home runs – over time

Macquarie Focused Large Growth ETF

Ticker: LRGG | Expense ratio: 0.45% | Inception: May 14, 2024

Quality-first philosophy in a portfolio of 15-25 large-cap growth stocks seeking to capitalize on high-conviction investment ideas

How clients are using LRGG:

  • Invest in a quality-first large-cap growth strategy to take advantage of the long-term compounding benefits and manage for market volatility 
  • Adjust for unintentional concentration in market-weighted passive strategies

Macquarie National High-Yield Municipal Bond ETF

Ticker: HTAX | Expense ratio: 0.49% | Inception date: March 5, 2025

High yield municipal bond portfolio with a yield-focused philosophy seeking to provide high levels of tax-advantaged income to investors

How clients are using HTAX:

  • Receive high levels of tax-advantaged income from municipal bonds 
  • Seek to benefit from fundamental credit analysis and security selection in an area of the municipal bond market where active management matters

Macquarie Tax-Free USA Short Term ETF

Ticker: STAX | Expense ratio: 0.29% | Inception date: November 28, 2023

Short-term municipal bond portfolio designed to deliver attractive levels of tax-advantaged income with less sensitivity to rates

How clients are using STAX:

  • Attain tax-advantaged income from municipal bonds with less sensitivity to interest rates

Macquarie Global Listed Infrastructure ETF

Ticker: BILD | Expense ratio: 0.50% | Inception date: November 28, 2023

Global portfolio seeking capital growth and income through opportunities in pure infrastructure3

How clients are using BILD:

  • Add exposure to physical assets that have inflation-linkage benefits 
  • Allocate to the growing infrastructure asset class through liquid securities

Macquarie Energy Transition ETF

Ticker: PWER | Expense ratio: 0.80% | Inception: November 28, 2023

Portfolio seeking long-term capital growth by identifying responsible energy producers and transition enablers


How clients are using PWER:

  • Add exposure that can benefit from the energy supply-demand imbalance
  • Diversify energy-related exposure to include oil and gas producers, materials, and clean technology

Chapter 06

ETF trading myths

When buying and selling ETFs, investors can benefit from adhering to simple best practices to ensure they attain strong execution on their trades.

In addition, many ETF issuers and advisors’ home offices have resources, such as capital markets and trading desks, that can help provide guidance and assist with trading. Despite the simplicity of purchasing and selling ETF shares, we’ve heard several common myths and pain points from advisors and their clients.

We’ve worked with investors, advisors, and institutions of all sizes. There are common misconceptions out there that can easily be addressed through education. We are here to help.”


Eric Flanigan
Head of ETF Capital Markets

Top five common myths

 

Trading best practices

What are some of the best practices when trading ETFs? Investors should consider their order type and the time of day, as both can impact achieving the investor's desired trade.

Order types

Not-held order

Prioritizing best experience and execution 

If you are looking to achieve best execution, you can submit a not-held order that gives trading authority to experts on the trading desk or a broker who looks to execute effectively.

Limit order

Prioritizing price

If you want to protect your trade, a limit order allows you to set a maximum purchase price or minimum sale price to get executed. This helps protect you on price. The risk associated with this order type is that if a broker is unable to execute at that price, the order could expire.

Market order

Prioritizing time 

If you prioritize time and need to invest immediately, you may consider a market order. This looks to execute the trade at any cost, irrespective of the risk impact to price. While this will guarantee the trade’s execution, you could have a negative price impact experience.

Beware of less ideal trading times

ETFs, and stocks more generally, can be more volatile during the first few minutes after the market opens and the last few minutes before the market closes. This also applies to the announcement of key economic news. For example, when the US Federal Reserve releases its views on monetary policy, the markets can be volatile based on the magnitude of the Fed’s decision. Lastly, because overall trading volume can be lower around major holidays, this can impact an ETF’s liquidity and trade execution.

Want to learn more?

View ETF FAQs

Email

Macquarie Asset Management
Sales Desk
advisorsolutions@macquarie.com

Telephone

Advisors: 877 693-3546

Investors: 844 469-9911

Active ETFs have a strategically selected underlying portfolio that is actively managed by a professional fund manager with the aim of achieving the ETF’s investment objectives. 

Active management seeks to provide a superior risk and return outcome over the long term compared with passive investing, while also aiming to reduce downside risks during market volatility.

Authorized participants (APs) are trading participants of an exchange that are permitted under the rules of the exchange to buy and sell units in the ETF on the exchange during the trading day. Only APs may engage in creation or redemption transactions directly with the ETF. The ETF has a limited number of financial institutions that are institutional investors and may act as APs.

Beta measures a security’s volatility in relation to its benchmark index.

Bid-ask spread is the difference between the price at which participants are willing to buy units (the bid price) and the price at which participants are willing to sell units (the ask price). ETFs and other investments traded on exchanges are subject to bid-ask spreads.

Market makers are broker/dealers that provide two-sided (that is, buy and sell) quotes to ETF investors on the relevant stock exchange for each trading day. In other words, the market maker’s role is to help facilitate liquidity for shares in the ETF on the exchange.

Net asset value (NAV) is the per-unit market value of the ETF’s underlying assets, less any fees, expenses, and other liabilities incurred by the ETF. It is calculated at the end of each trading day and can be used as a guide when evaluating the latest bid or ask price for an ETF unit.

Passive ETFs typically track the performance of an index, benchmark, sector, or commodity.

Premium/discount captures the difference between the ETF’s closing market price and NAV, as a percentage of the ETF’s NAV. Positive values indicate an ETF trading at a premium, and negative values indicate an ETF trading at a discount.

Price-to-earnings ratio (P/E ratio) is a valuation ratio of a company’s current share price compared to its earnings per share. Generally, a high P/E ratio means that investors are anticipating higher growth in the future.

The S&P 500 Index measures the performance of 500 mostly large-cap stocks weighted by market value and is often used to represent performance of the US stock market.

  1. Source: Morningstar.
  2. Source: State Street Global Advisors, “2024 ETF Impact Survey: Key Findings and Analysis” p.39 (2024).
  3. Pure infrastructure: Greater than 80% of enterprise value attributable to regulated utilities, energy infrastructure (energy transport/storage companies), user demand/transportation (airports, tolls roads, seaports, railways), and communication (cell-tower companies).

Investing in any exchange-traded fund involves the risk that you may lose part or all of the money you invest. 

Carefully consider the Fund's investment objectives, risk factors, and charges and expenses before investing. This and other information can be found in the Fund's prospectus or the summary prospectus, which may be obtained by visiting the Macquarie ETF Trust resource pages or calling 844 469-9911. Read the prospectus carefully before investing.

The Macquarie ETF Trust Funds are distributed by Foreside Financial Services, LLC. Foreside Financial Services, LLC is not affiliated with any Macquarie entity, including Macquarie Asset Management and Delaware Distributors, L.P.

All third-party marks cited are the property of their respective owners.

Nothing presented should be construed as a recommendation to purchase or sell any security or follow any investment technique or strategy.

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