Active ETF growth brings risk management into focus as Neuberger launches quality equity strategy

Neuberger has expanded its active ETF platform with the launch of the Neuberger Quality Select ETF, highlighting the growing role of actively managed exchange-traded funds as investors seek differentiated strategies focused on quality and resilience.

The rapid expansion of the active ETF market is entering a new phase as asset managers increasingly use the exchange-traded fund structure to deliver investment strategies traditionally associated with mutual funds and institutional mandates.

Neuberger, the employee-owned investment manager, has launched the Neuberger Quality Select ETF (NYSE Arca: NQLT), an actively managed ETF designed to provide investors with exposure to a concentrated portfolio of quality mid- and large-cap companies.

The fund is managed by Daniel P. Hanson, CFA, Senior Portfolio Manager and Head of Neuberger’s Quality Equity Group, which oversees more than $9 billion in assets across its investment capabilities. The launch expands Neuberger’s ETF offering as traditional active managers continue to adapt their investment strategies for a market increasingly dominated by exchange-traded products.

The growth of active ETFs reflects a broader shift in asset management. While ETFs were historically associated with passive index investing, the structure has increasingly become a distribution channel for active strategies spanning equities, fixed income, alternatives and outcome-oriented portfolios.

For investors, the attraction lies in combining some of the operational benefits of ETFs, including intraday liquidity, transparency and accessibility—with the security selection and portfolio management approach of active investing.

However, the rapid expansion of the ETF market has also increased focus on product quality, liquidity and investor risk management. With thousands of ETFs now available globally, investors and advisers face a growing challenge in distinguishing between strategies designed to provide long-term portfolio value and those built around short-term market trends.

Neuberger’s launch reflects a move towards a more selective approach, positioning the fund around companies identified through fundamental research and quality characteristics rather than narrowly defined market themes.

The development comes as asset managers compete to capture flows from investors seeking more sophisticated portfolio solutions. Active ETFs are increasingly being used to deliver differentiated approaches to equity markets, including defensive strategies, income generation and risk-aware allocations.

For wealth managers and institutional investors, the expansion of active ETFs highlights a wider evolution in investment distribution. The ETF wrapper is no longer simply a low-cost passive vehicle; it is becoming an increasingly important platform for delivering actively managed investment expertise.

As competition intensifies, the next stage of ETF growth is likely to focus not only on innovation, but also on transparency, suitability and the ability of managers to demonstrate genuine investment value.