{"url":"https://www.barrons.com/articles/active-etfs-are-booming-these-3-are-top-picks-9d416e63","title":"Active ETFs boom with three Morningstar top picks","domain":"barrons.com","imageUrl":"https://images.pexels.com/photos/5561916/pexels-photo-5561916.jpeg?auto=compress&cs=tinysrgb&h=650&w=940","pexelsSearchTerm":"active ETFs boom","category":"Business","language":"en","slug":"91ad899b","id":"91ad899b-f16c-4105-b5fb-7f0c1245e115","description":"Barron's highlights the boom in active ETFs as investors seek options beyond passive index funds.[[1]](https://www.barrons.com/articles/active-etfs-are-boo","summary":"## TL;DR\n- Barron's highlights the boom in active ETFs as investors seek options beyond passive index funds.[[1]](https://www.barrons.com/articles/active-etfs-are-booming-these-3-are-top-picks-9d416e63)\n- Morningstar names three top picks for 2026: T. Rowe Price Floating Rate ETF (**TFLR**), Hartford Strategic Income ETF (**HFSI**), and Capital Group Dividend Value ETF (**CGDV**).[[1]](https://www.barrons.com/articles/active-etfs-are-booming-these-3-are-top-picks-9d416e63)[[2]](https://www.morningstar.com/etfs/arcx/tflr/quote)[[3]](https://www.morningstar.com/etfs/bats/hfsi/quote)[[4]](https://www.morningstar.com/etfs/arcx/cgdv/quote)\n- These funds offer income and diversification through bank loans, bonds, and dividend stocks in a choppy market.[[1]](https://www.barrons.com/articles/active-etfs-are-booming-these-3-are-top-picks-9d416e63)\n\n## The story at a glance\nBarron's reports on the rapid growth of active ETFs, which now hold about 10% of total ETF assets at $13.3 trillion as of March.[[1]](https://www.barrons.com/articles/active-etfs-are-booming-these-3-are-top-picks-9d416e63) Citigroup strategist Drew Pettit forecasts active ETFs' market share doubling to 21% as assets hit $42 trillion by 2035.[[1]](https://www.barrons.com/articles/active-etfs-are-booming-these-3-are-top-picks-9d416e63) The article spotlights three Morningstar-recommended active ETFs from T. Rowe Price, Hartford Funds, and Capital Group as strong picks for income and diversification in 2026.[[1]](https://www.barrons.com/articles/active-etfs-are-booming-these-3-are-top-picks-9d416e63) This comes amid market volatility from oil prices and steady Fed rates.[[1]](https://www.barrons.com/articles/active-etfs-are-booming-these-3-are-top-picks-9d416e63)\n\n## Key points\n- Active ETFs' assets have surged, making up 10% of the $13.3 trillion ETF market; Citigroup sees this share doubling over the next decade.[[1]](https://www.barrons.com/articles/active-etfs-are-booming-these-3-are-top-picks-9d416e63)\n- **T. Rowe Price Floating Rate ETF (TFLR)** targets leveraged bank loans just below investment grade, yields nearly **7%**, up slightly this year, and averaged **8%** annualized over one and three years, beating its category.[[1]](https://www.barrons.com/articles/active-etfs-are-booming-these-3-are-top-picks-9d416e63)\n- **Hartford Strategic Income ETF (HFSI)** helps in a bond market where long-term yields sit around **4.3%** year to date, amid lingering inflation fears from oil despite U.S.-Iran cease-fire and expected steady Fed rates.[[1]](https://www.barrons.com/articles/active-etfs-are-booming-these-3-are-top-picks-9d416e63)\n- **Capital Group Dividend Value ETF (CGDV)** provides income via dividends, appealing as investors navigate choppy conditions.[[1]](https://www.barrons.com/articles/active-etfs-are-booming-these-3-are-top-picks-9d416e63)\n- Morningstar rates all three highly as top active ETF picks for 2026, fitting needs for floating-rate income, strategic bonds, and dividend value.[[5]](https://oakmark.com/wp-content/uploads/sites/3/2026/03/Morningstar-The-Best-Active-ETFs-to-Buy-in-2026.pdf)[[6]](https://www.morningstar.com/funds/best-active-etfs-buy-2026)\n\n## Details and context\nInvestors have flocked to active ETFs for better navigation of volatility, moving past reliance on passive funds tracking big tech or indexes. Total ETF assets stood at $13.3 trillion in March per LPL Financial data, with active strategies gaining traction.[[1]](https://www.barrons.com/articles/active-etfs-are-booming-these-3-are-top-picks-9d416e63)\n\nTFLR focuses on higher-yielding loans resilient to rate changes, posting gains in a tough year. HFSI offers flexibility across bonds when yields rise on oil worries post-cease-fire. CGDV taps dividend payers for steady income without heavy tech exposure.[[1]](https://www.barrons.com/articles/active-etfs-are-booming-these-3-are-top-picks-9d416e63)\n\nThese picks align with Morningstar's broader list of top active ETFs, emphasizing strong processes and people in specialized roles like bank loans and multisector bonds.[[5]](https://oakmark.com/wp-content/uploads/sites/3/2026/03/Morningstar-The-Best-Active-ETFs-to-Buy-in-2026.pdf)\n\n## Key quotes\n\"Drew Pettit, U.S. equity and ETF strategist at Citigroup: 'Underlying the impressive industry growth story is the surge in active ETFs. We expect this tailwind to persist.'\"[[1]](https://www.barrons.com/articles/active-etfs-are-booming-these-3-are-top-picks-9d416e63)\n\n## Why it matters\nActive ETFs now represent a growing slice of the market, offering tools to handle rate uncertainty, inflation risks, and sector rotations beyond passive benchmarks.[[1]](https://www.barrons.com/articles/active-etfs-are-booming-these-3-are-top-picks-9d416e63)\nInvestors get specific income options like **7%** yields from loans or dividends, plus diversification in rocky conditions, potentially boosting returns over indexes.[[1]](https://www.barrons.com/articles/active-etfs-are-booming-these-3-are-top-picks-9d416e63)\nWatch Fed rate decisions and oil prices, as they could sway bond yields and these funds' performance; active strategies may shine if volatility persists.[[1]](https://www.barrons.com/articles/active-etfs-are-booming-these-3-are-top-picks-9d416e63)","hashtags":["#etfs","#activeetfs","#investing","#finance","#morningstar","#barrons"],"sources":[{"url":"https://www.barrons.com/articles/active-etfs-are-booming-these-3-are-top-picks-9d416e63","title":"Original article"},{"url":"https://www.morningstar.com/etfs/arcx/tflr/quote","title":""},{"url":"https://www.morningstar.com/etfs/bats/hfsi/quote","title":""},{"url":"https://www.morningstar.com/etfs/arcx/cgdv/quote","title":""},{"url":"https://oakmark.com/wp-content/uploads/sites/3/2026/03/Morningstar-The-Best-Active-ETFs-to-Buy-in-2026.pdf","title":""},{"url":"https://www.morningstar.com/funds/best-active-etfs-buy-2026","title":""}],"viewCount":2,"publishedAt":"2026-04-15T04:06:24.004Z","createdAt":"2026-04-15T04:06:24.004Z","articlePublishedAt":"2026-04-09T00:00:00.000Z"}