Active ETFs Now Take 42% of Every Dollar Flowing Into ETFs, Up From 26% in 2024
The undaunted rise of actively managed ETFs is an opportunity for investors considering both funds and individual stocks.
Overview
Exchange-traded funds (ETFs) are widely synonymous with passive investing. So much so that when investors ponder how to invest in index funds, many instinctively turn to ETFs.
ETFs' links to passive, or index-based, investing are among the reasons why the asset class was once viewed as a threat to active mutual funds. That perceived threat was enhanced by the facts that ETFs trade like stocks (all day while the market is open), offer tax perks relative to mutual funds (minimal odds of capital gains distributions), and generally feature lower fees.
The rise of active ETFs could boost shares of select asset managers. Image source: Getty Images.
Details
Source
Originally published at www.fool.com.