The performance history has been a large factor in gauging active funds’ staying power, and many of the newer active ETFs have not had enough time to establish a record.
Additionally, actively managed ETFs are required to disclose holdings on a daily basis, which has discouraged some managers from launching an active ETF of their own and revealing their secret sauce.
However, some assets, like actively managed futures, have deep liquidity and pull from a wide array of securities, making the strategy harder for most traders to replicate. For example, the WisdomTree Managed Futures Strategy Fund (NYSEArca: WDTI) utilizes a combination of U.S. treasury futures, currency futures, non-deliverable currency forwards, commodity futures, commodity swaps, U.S. government and money market securities. [Control Portfolio Risk with Managed Futures ETFs]
For more information on active ETFs, visit our actively managed ETFs category.
Max Chen contributed to this article.