3 Actively Managed ETFs to Put on Your Radar in 2024
The bulk of exchange-traded funds, or ETFs, are passively managed index funds, which means they're simply designed to track a certain benchmark index such as the S&P 500 or Russell 2000. However, it might surprise you to learn that there are hundreds of actively managed ETFs that aim to beat the market, provide additional income, or provide exposure to specific assets.
To be sure, when you're investing in actively managed ETFs, there are a few things to keep in mind. For one thing, it's important to keep fees in mind. You can find index funds with expense ratios of 0.10% or less, while it isn't uncommon for actively managed ETFs to have expenses that are five times this percentage, or even more. Second, there can be far more inherent risk with actively managed ETFs. Think of it this way: You can't have opportunities to beat the market without the potential of underperforming the market if things go poorly.
Having said all of that, here are three of my favorite actively managed ETFs and a little more about each one to help you decide if one of them could be a smart addition to your portfolio.
Source Fool.com
