Celebrating $5B AUM with 5 ETF predictions for 2026

Source: Morningstar as of 12/31/25

Source: Morningstar as of 12/31/25

3. Investors will continue to “get active with factors”

Advisors are increasingly getting active with factors—bringing more intention and structure to how they use them.

• Strategic adjustments—DIY or outsourced
  Many advisors will keep broad factor exposure at the core, then make strategic tweaks—either by using single-factor ETFs or by outsourcing those adjustments to strategies that manage the tilts for them. These shifts can reflect a view on the market while keeping portfolios grounded in long‑term factor exposures
• Accelerating adoption of active factor ETFs
  Advisors continue to gravitate toward active factor ETFs for systematic, risk‑aware implementation with an active overlay. I recently wrote about this in the context of SEIV’s approach to value investing: Not all value ETFs are created equal.

In 2026, factor investing becomes more active, flexible, and implementation‑smart.

4. Public/private ETFs start going mainstream

While public/private ETFs sound new, the underlying idea has been part of the ’40 Act ecosystem for years. At SEI, we’ve incorporated private exposures within regulated vehicles for decades. Our High Yield Bond Fund, now over 30 years old, has long invested in private collateralized loan obligation* tranches alongside public high-yield credit.

What’s shifting is advisor familiarity. Wealth channels are increasingly comfortable with vehicles that blend:

• Public market liquidity
• Private market return drivers
• Institutional sourcing and underwriting

In 2026, I expect these hybrid ETF structures to evolve from early curiosity to mainstream portfolio tools.

*A collateralized loan obligation (CLO) is a structured security that bundles a pool of lower-rated corporate loans and sells them to investors in tranches which offer varying degrees of risk and return.

5. Liquid alternatives become the next leg of ETF innovation

Volatility, dispersion, and the growing need for diversification are driving renewed interest in liquid alternatives. After years of industry discussion, the adoption curve is turning.

This is one reason we launched QALT, the SEI DBi Multi-Strategy Alternative ETF, providing advisors with institutional hedge fund replication in a transparent, low-cost, and liquid wrapper.

As asset allocators look beyond traditional stock‑bond mixes, liquid alts will become one of the most important innovation themes of 2026.

Looking ahead

Reaching $5B in ETF AUM is an exciting milestone for SEI, but it’s just the beginning. With a growing suite of quantitative, active, and alternative strategies—and increasing momentum across the advisor marketplace—we’re focused on scaling the platform, expanding access, and delivering solutions aligned with the evolving needs of advisors and their clients.

See our financial term and index definitions  

Important information 

As of 2/2/2026 

SEI Investments Management Corporation (SIMC) is the adviser to the SEI Exchange Traded Funds, which are distributed by SEI Investments Distribution Co (SIDCO). SIMC and SIDCO are wholly owned subsidiaries of SEI Investments Company (SEI). 

To determine if a Fund is an appropriate investment for you, carefully consider the fund’s investment objective, risks, and charges and expenses. This and other information can be found in the fund’s prospectus, and if available, the summary prospectus, which can be obtained by calling 1-800-DIAL-SEI. Please read the prospectus carefully prior to investing. 

Investing involves risk, including possible loss of principal. There is no guarantee an investment will achieve its investment objective nor that risk can be managed successfully. Diversification may not protect against market risk. Alternative investments are subject to a complete loss of capital and are only appropriate for parties who can bear that risk and the illiquid nature of such investments. Investment strategies that trade securities actively may have increased transaction costs and could increase the amount of taxes you owe by generating short-term gains, which may be taxed at a higher rate. 

This material represents an assessment of the market environment at a specific point in time and is not intended to be a forecast of future events, or a guarantee of future results. This information should not be relied upon by the reader as research or investment advice and is intended for educational purposes only. 

Certain information contained herein has been provided to SEI by an unaffiliated third party. SEI cannot guarantee the accuracy or completeness of the information and assumes no responsibility or liability for its incompleteness or inaccuracy. 

There can be no assurance that performance will be enhanced, or risk will be reduced for investment strategies that seek to provide exposure to certain quantitative factors. Exposure to such investment factors may detract from performance in certain market environments, in some cases for extended periods. In such circumstances, an investment strategy may seek to maintain exposure to the targeted investment factors and not adjust to target different factors, which could result in losses. When these investment strategies are actively managed, the investment process is expected to be heavily dependent on quantitative models, and the models may not perform as intended.