Actively managed ETFs trade like stocks on an exchange throughout the day. Unlike traditional beta-index ETFs, active ETFs do not track an underlying index but are backed by an active manager or team. Additionally, active ETFs disclose their portfolio holdings on a daily basis, unlike traditional open-end funds.
Active ETFs were first introduced in 2008. Active ETFs, though, have been slow to gain traction. There are 119 U.S.-listed actively managed ETFs on the market, with $18.8 billion in assets under management, according to XTF data. In contrast, there are currently 1,668 U.S.-listed ETFs with $2.01 trillion in assets under management.
For more information on active ETFs, visit our actively managed ETFs category.
Max Chen contributed to this article.