From NBC Universal: 2024-11-27 13:07:26

Actively managed ETFs are gaining popularity as investors shift money from active mutual funds to active ETFs. Active ETFs have seen positive inflows, while active mutual funds have faced outflows. Active ETFs offer cost benefits and potential outperformance, attracting investor interest. Passive investing through index funds offers lower fees. Active managers tend to underperform index funds over the long term. ETFs provide cost advantages and tax efficiency compared to mutual funds. Converting mutual funds to ETFs has become a trend, attracting new capital and stemming outflows. However, investors may face limitations with active ETFs in workplace retirement plans and certain investment strategies.

Read more: Why exchange-traded funds are a ‘growth engine’ of active management