Active ETFs

Active Management 2.0 is Here. Are You Ready?

Learn why actively managed ETFs are disrupting the mutual fund industry and how you can get started.

While most ETFs simply track an index fund offering low costs and the opportunity to gain market exposure, actively managed ETFs offer the benefits of the exchange traded fund vehicle with opportunities to outperform the market.

Thanks to efforts by the Securities and Exchange Commission (SEC) and innovation among asset managers, active ETFs are outpacing the growth of passive ETFs with strong interest among astute financial advisors and individual investors.

Whether you’re just getting started with Active ETFs or already know the industry landscape, you’ll find useful insights about Active ETFs on Wealthtender. And soon, you’ll also discover top Active ETF managers featured here as well.

Are you an investment industry professional or active ETF asset manager?

Hi there! 👋 Thanks for visiting Wealthtender. ETF Industry Leaders are invited to join the Active ETFs LinkedIn Group sponsored by Wealthtender and dedicated to the discussion of Active ETFs. With more than 1,200 global ETF industry executives and professionals, you’ll gain networking opportunities and the chance to share your message with this highly relevant audience.

Are you an active ETF asset manager interested in being featured on Wealthtender? Please send an email to brian@wealthtender.com to learn how to get started.

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What are Active ETFs, Anyway?

Actively managed ETFs are exchange-traded funds that invest in securities like stocks and bonds chosen by the fund’s manager rather than passively following an index or a rules-based strategy. Are Active ETFs right for you?
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Where Active ETFs Do Not Make Sense

While it’s important to point out the advantages of actively-managed ETFs that has resulted in such an interest in the market, it is also important to understand where they do not make sense and are not as effective a delivery mechanism when compared to traditional structures.
(Read or Listen)

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Socially Responsible Investing with ETFs

If we all care more about where our money goes, investing in ethical companies becomes not just an important moral choice, but potentially a financially wise one, too.
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APPLES & ORANGES

Active ETF vs Mutual Fund: Similarities and Differences

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LOWER COST

Active ETF Basics: Active ETF Expense Ratio

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How do Active ETFs compare to Index ETFs?

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Common Questions

What are active ETFs?

Actively managed ETFs are exchange-traded funds that invest in securities like stocks and bonds chosen by the fund’s manager rather than passively following an index or a rules-based strategy.  Often, actively managed ETFs are simply referred to as active ETFs.

As with actively managed mutual funds, the performance of an active ETF is dependent upon the investment selection of the manager whose goal is to outperform a market benchmark. The lower cost of active ETFs increases the likelihood of achieving this goal by reducing the investment returns required by the fund manager.

How do active ETFs compare to mutual funds and passive ETFs

The table below provides a comparison of active ETFs vs active mutual funds, as well as to passive ETFs. You can learn more about the differences between these vehicles in this article on Wealthtender.

AttributeActive ETFsActive Mutual FundsPassive ETFs
Seeks to outperform the market or its benchmarkYesYesNo
Relies on the active security selection of a fund managerYesYesNo
Tracks an index or popular benchmarkNoNoYes
Trades on one or more stock exchangesYesNoYes
Can be sold shortYesNoYes
Can be purchased on marginYesNoYes
Tax-efficient structureYesNoYes
Relative cost (typical)MiddleHighestLowest