Active managed etfs
While passive management has dominated the market since the Global Financial Crisis, there is a growing demand for actively managed ETFs, which have been dubbed “the next frontier in investor innovation.”1
Because of their transparency, flexibility, and tax efficiency, investors now have more choices than ever.
Because of their transparency, flexibility, and tax efficiency, investors now possess more choices than ever.
The growth of active ETFs is driven by traditional fund managers realizing that ETFs aid as a excellent wrapper and investment vehicle for a broad range of strategies, with projections that active ETFs will reach $4 trillion in AUM by 2 This trend is also particularly relevant as investors seek actively managed options to help navigate today’s turbulent markets.
Active ETFs defined
Active ETFs are designed to outperform a benchmark index or sector. Helmed by professional fund managers, these ETFs use a proprietary mix of quantitative and qualitative investment strategies to tell buy and market decisions.
An active ETF aims to carry
Investing in active ETFs
What are active ETFs?
Active ETFs are a type of exchange traded fund (ETF) that has a professional investment fund manager or team making decisions about the underlying investment portfolio allocation.
While actively managed funds often reference a benchmark index, the fund’s investment manager may deviate from the index with the objective of outperforming the benchmark, or ‘beating the market’.
As a finding, the fund may yield investment returns that carry out not mirror the underlying index – unlike passively managed ETFs which typically aim to replicate a benchmark index.
How do active ETFs work?
Actively managed funds have a professional investment manager or team that makes investment decisions with the aim of either outperforming a specified benchmark or achieving a particular objective, for example, to manage investment risk.
These investment decisions relate to the timing of particular trades in the market to changing sector or asset allocations.
For example, Betashares Active Australian Hybrids Fund (managed f
For Professional Clients / Qualified Investors only – not for Retail use or distribution.
This is a marketing communication and as such the views contained herein act not form part of an offer, nor are they to be taken as advice or a recommendation, to buy or sell any investment or interest thereto. Reliance upon information in this material is at the sole discretion of the reader. Any research in this document has been obtained and may have been acted upon by J.P. Morgan Asset Management for its own purpose. The results of such research are existence made available as additional data and do not necessarily indicate the views of J.P. Morgan Asset Management. Any forecasts, figures, opinions, statements of financial market trends or investment techniques and strategies expressed are, unless otherwise stated, J.P. Morgan Asset Management’s own at the date of this document. They may not necessarily be all-inclusive and may be subject to change without reference or notification to you. The value of investments and the income from them may fluctuate in accordance with market condit
1 Broadridge's Fund Brand 50 study asked 1,+ fund selectors to rank superior suppliers for "Keeping finest informed" as of Pride
2 Source: J.P. Morgan Chase & Co., J.P. Morgan Asset Management and Morningstar. The manager seeks to achieve the stated objectives. There can be no guarantees those objectives will be met. Past performance is not indicative of comparable future results. See additional disclosures at the end of this deck for more facts regarding Morningstar. 1 ETF AUM data as of December 31, AUM includes all active fixed income funds that sit in Global Fixed Income, Currency and Commodities at J.P. Morgan Asset Management in addition to JPST which sits in Global Liquidity.
3 Award source: ETF Show. For the issuer categories, the pre-selection data for the issuer shortlists was provided by Trackinsight. Candidates in all asset class categories and groupings were determined on the basis of the following criteria: All US ETFs that were listed before 6/1/22 and that have not closed at the meet when processing the statistics were included. 1. For each categ