The exchange-traded fund (ETF) structure shares certain similarities with mutual funds, but also important differences that investors need to understand, especially if you’re used to investing through mutual funds. These differences can prove to be advantageous for investors in actively managed ETFs compared to other investors who hold their money in active mutual funds. Investing […]
How Much Does Your ETF Really Cost? Let’s Discuss an Active ETF Expense Ratio vs. Index ETFs vs. Mutual Funds One of the most important factors to consider when analyzing and comparing ETF investment options is the expenses of the fund. The ETF arena now has so many investment options, that many areas in the […]
Active mutual funds faced their first stern challenge when indexing started gaining ground and investors started putting money into passive strategies through index ETFs and index mutual funds. However, that challenge came from another discipline of investing – from people who didn’t believe in active management. So as far as active mutual funds were concerned, […]
When comparisons are made between actively-managed ETFs and their competitors, they are often compared with their passive counterparts. The 4 pillars of the ETF structure that gives it such an advantage is their liquidity, tax efficiency, transparency and of course low cost. The argument is made that Active ETFs are deficient to Index ETFs because […]
Much has been made of disclosure issues relating to Actively-Managed ETFs. The disclosure related concerns were probably what made the SEC take 2-3 years before finally approving the first Active ETF in 2008, which was brought to market by Bear Stearns. The discussion of this issue usually revolves around Active ETFs being seemingly less […]
The daily transparency required of actively-managed ETFs in the US has been one of the main selling points of these new products, while at the same time being probably the biggest hurdle discouraging many active managers from embracing this relatively new structure. Since they were approved in 2008 by the SEC, actively-managed ETFs in […]
With the number of players entering the Active ETF arena turning from a drip into an outright flood, we are likely to see a much wider variety of products and strategies come to market in the form of actively-managed ETFs. While it’s important to point out the advantages of actively-managed ETFs that has resulted […]
With actively-managed ETFs still a relatively new product, providers are trying hard to garner investor interest through many different means. One of those is by lowering the expense ratio of the Active ETFs temporarily through fee waivers. Fee waivers are common in newly launched actively-managed ETFs where the ETF manager provides a reimbursement of […]
A big difference between exchange-traded funds (ETFs) and mutual funds is the ability to trade in the ETF intraday on the exchange. Investors can see an indicative price for the fund at any point during the trading day and purchase or sell the fund just like they would a stock, using margin, limit orders etc. […]