ACTIVE ETFs

Exchange-traded-funds, or ETFs, invest in a basket of securities, such as stocks, bonds, or other asset classes. Similar to a stock, ETFs can be traded whenever the markets are open.

By combining the diversification benefits of mutual funds with the ease of stock trading, ETFs are able to provide investors with a simple way to access the world’s financial markets.

Active ETFs are investment funds that are actively managed by professional portfolio managers who actively select and adjust the fund's holdings. They trade on stock exchanges, providing investors with potential benefits of active management and exchange-traded funds (ETFs).

Index ETFs seek to track the performance of a specific index. Active ETFs involve professional management aiming to either outperform the market, deliver a specific outcome such as income or managing market volatility, or provide access to hard-to-index markets.

Active ETFs offer the potential for outperformance of an index or delivery of specific outcomes through active management, allowing portfolio managers to adapt to market changes, capitalise on opportunities, and potentially achieve above index returns or specific outcomes.

Active ETFs are managed by professional portfolio managers who actively select and adjust the fund's holdings in an effort to meet its investment objectives. This involves ongoing analysis and decision-making based on market conditions.

Risks may include market volatility, manager performance, and the impact of fees on returns. Investors should carefully consider these factors and assess their risk tolerance before investing in active ETFs.

ETFs trade like stocks on exchanges, offering intraday pricing and no minimum investment amount in order to access a fund. Mutual funds are bought or sold directly from the manager at the market end-of-day prices and have minimum investment amounts. ETFs typically disclose their full portfolio of holdings daily, mutual funds tend to disclose this once a quarter.