Most investors know exchange-traded funds as passive, index-based investments that give them a chance to buy into a market, from the S&P 500 to health-care stocks, without worrying the fund manager is going to make a wrong-way pick on the next Enron. So you might have scratched your head over the term “active” ETFs.
First, these funds are what they sound like: ETFs whose holdings are picked by individuals, rather than simply tracking an index. They have been attracting investor assets and media attention. Even Vanguard, best known for pioneering low-cost indexing, took a step last week toward offering these actively managed products...............................................Full Article: Source
|