What is an active ETF?
When looking at active ETFs, it is first important to note that terms such as “ETF”, “passive” and “index” are not synonymous. ETF simply means Exchange Traded Fund, which means an ETF is traded at an exchange regardless of the investment strategy used.
A variety of “engines” or strategies can therefore be placed in the ETF structure to leverage its benefits.
“Active” refers to specific investment decisions, which are designed to achieve specific outcomes, such as outperforming an index (Alpha), generating income, or achieving control in terms of duration, yield or credit quality.
An active ETF provides access to these specific outcomes, all while maintaining the attributes of the ETF structure.
The ETF is just a wrapper and the content itself is independent of the vehicle
Past performance is not a reliable indicator of current and future results.
