Friday, January 7, 2011

Actively Managed ETF

An actively managed ETF is an exchange traded fund that has a portfolio manager that implements various strategies to try and generate returns greater than a benchmark. This is in contrast to a passive ETF or index tracking ETF, which seeks to closely mirror the returns of an index. Active managed ETFs may have advantages if the portfolio management team have superior abilities, however passive managed ETFs provide investors with a greater degree of certainty around what securities are/will be in the portfolio.

Synonyms: ETF, Active ETF

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