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B. G., Opalesque Geneva:

Active ETFs, which have grown at a 38.4% annual rate over the past 10 years, will continue to be a focus for ETF investors as they seek downside protection while pursuing new and innovative opportunities, according to the Brown Brothers Harriman (BBH) 2024 Global ETF Investor Survey.

A majority of ETF investors predict an increase in their overall portfolio exposure to active ETFs in the next 12 months and 80% of ETF investors have purchased at least one active ETF in the past 12 months. And almost half of investors cite index mutual funds as a top source from which they have reallocated capital to purchase an active ETF.

An actively managed ETF is an exchange-traded fund with a manager or team making decisions on the underlying investments in the fund. The trend started with Vanguard in 2018. Often, an actively managed ETF tracks a benchmark index, but managers may change sector allocations, market-time trades, or deviate from the index as they see fit to try and meet the fund's objectives. According to Investopedia, while investors can benefit from lower expense ratios than mutual funds and the participation of profes......................

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