Registered investment advisors are increasingly looking beyond U.S. borders for client capital, and a new survey from William Blair Investment Management suggests actively managed exchange-traded funds will be their primary vehicle. The Chicago-based asset manager polled 200 U.S.-based RIAs and found that 56% expect to raise their active ETF allocations to international and emerging markets over the next 12 months. No other investment wrapper—including passive ETFs, mutual funds, model portfolios, or individual securities—garnered comparable interest.
The survey reflects a growing unease about the concentration of client wealth in U.S. equities. Nearly three-quarters of respondents (73%) said investor portfolios are heavily weighted toward U.S. stocks, and 90% agreed that international diversification is more important now than it was a year ago. "Advisors aren't stepping away from the U.S., but they are casting a wider net," said Jay Lisowski, global head of product strategy and development at William Blair Investment Management.
Why active ETFs are gaining traction abroad
Active ETFs allow portfolio managers to select securities rather than track an index, while retaining the exchange-traded structure. Lisowski argues this flexibility is especially valuable in non-U.S. markets, where benchmarks can have structural gaps. "Benchmarks across non-U.S. markets can have blind spots, including differing country classifications and inclusion rules," he said. "Actively managed ETFs allow investors to make those portfolio decisions intentionally while maintaining the tax efficiency, liquidity, and transparency associated with the ETF structure."
The survey's tilt toward active ETFs aligns with broader industry trends. Research from UMB Fund Services and FUSE Research Network shows active ETF adoption has tripled in five years, with active strategies holding roughly 12% of the $14.9 trillion U.S. ETF market as of April 2026, up from 4% in 2021. The same research found that 22% of advisors plan to reduce their use of active mutual funds. Meanwhile, active strategies attracted about $574 billion in the first nine months of 2026, nearly 40% of all U.S.-listed ETF flows despite representing just 13% of industry assets, according to State Street Investment Management. Overall, U.S.-listed ETF inflows hit a record $1.54 trillion through September, already surpassing the full-year 2025 total of $1.52 trillion, as record ETF inflows continue to reshape the landscape. Globally, active ETF assets climbed to a record $2.59 trillion at the end of July, per ETFGI data.
Where RIAs see the best opportunities
When asked to name up to three non-U.S. markets with the strongest prospects over the next three to five years, advisors most frequently cited the United Kingdom (32%), followed by China (28%) and Canada (26%). Japan and Germany each drew 24%, while India was named by 17%. By region, Asia-Pacific led at 77%, followed by Europe at 70%, with the Americas at 40% and the Middle East and Africa at 26%.
Flows already reflect this preference. Non-U.S. equity ETFs gathered $30 billion in September, representing 36% of all equity ETF inflows while accounting for only 17% of equity ETF assets, State Street reported. Emerging markets ETFs posted net inflows in 19 of the past 20 months, supported by a 21% year-to-date gain compared with 12% for U.S. stocks. "While still attractive, the United States is no longer the only engine of economic growth and investment returns," said Olga Bitel, chief investment strategist at William Blair, in a recent note.
Despite the enthusiasm for international exposure, 86% of respondents agreed that failing to raise international allocations over the next three to five years would represent a missed opportunity. "The advisors we work with want resilient portfolios," said Ryan Airola, head of North American intermediary distribution at William Blair. "In our view that means owning U.S. assets with conviction and complementing them with exposure to growth opportunities elsewhere."
The findings come as advisors also grapple with broader retirement and planning concerns. For instance, older Americans' fears about spending retirement savings highlight the need for diversified income strategies, while AI's role in boosting trust in advisors may influence how firms communicate these allocation shifts.
