Active ETFs

First introduced in 2008, active exchange-traded funds (ETFs) are run by fund... First introduced in 2008, active exchange-traded funds (ETFs) are run by fund managers rather than being designed to track an underlying index. Managers actively select stocks, bonds, alternatives, and other assets based on the ETF’s mandate in an effort to ‘beat’ their underlying benchmarks. This is similar to an actively-run mutual fund that seeks to outperform an index. As an ETF, the benefits of the fund type are still there, including intraday tradability, creation/redemption mechanism, and potential tax savings. Active ETFs are also required to reveal their holdings each day. However, semi-transparent ETFs have recently been approved by the SEC and allow managers to reveal holdings quarterly or semi-annually. View more View less

First introduced in 2008, active exchange-traded funds (ETFs) are run by fund managers rather than being designed to track an underlying index. Managers actively select stocks, bonds, alternatives, and other assets based on... First introduced in 2008, active exchange-traded funds (ETFs) are run by fund managers rather than being designed to track an underlying index. Managers actively select stocks, bonds, alternatives, and other assets based on the ETF’s mandate in an effort to ‘beat’ their underlying benchmarks. This is similar to an actively-run mutual fund that seeks to outperform an index. As an ETF, the benefits of the fund type are still there, including intraday tradability, creation/redemption mechanism, and potential tax savings. Active ETFs are also required to reveal their holdings each day. However, semi-transparent ETFs have recently been approved by the SEC and allow managers to reveal holdings quarterly or semi-annually. View more View less