Sunday, January 6, 2008

Will Actively Managed ETFs Fly

The traditional province of ETFs are passively managed funds which match indexes with low fees. A new breed of actively-managed ETFs are rising. Many folks have questioned whether these ETFs are actually any different from closed-end funds which also trade on the exchanges. Another concern will be if actively-managed ETFs can meet regulatory requirements.

The ETF market exploded due to investors seeking low-fee vehicles which matched indexes; will the firms proposing these actively-managed units be able to exceed market performance while keeping fees low. Do actively-managed ETFs really serve the investor? A recent article from explores this in more detail - A Push Is On for Actively Managed ETFs.