Active ETFs: The Rise of Active Investing in the Financial Markets
Active ETFs Transforming Investment Strategies
Active ETFs have gained significant traction in recent years, reflecting a growing interest in active investing. With a surge in assets nearing $1 trillion, these investment vehicles offer a compelling alternative to traditional ETFs.
Key Drivers of Growth
- Regulatory Changes: The SEC's rule change in 2019 has empowered more managers to offer actively managed ETFs.
- Investor Demand: The increasing need for flexibility and specialized investment strategies has bolstered interest.
- Performance Potential: Many investors are drawn to the possibility of outperforming benchmarks.
Market Impact
The rise of active ETFs is reshaping the market dynamics, pushing more investors to consider these innovative products as part of their portfolios.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.