Actively Managed ETF

Most ETFs track an index, in what’s known as index-based or passive investing. An actively managed ETF is a fund that literally has a portfolio manager at the helm of the fund, making active allocation decisions rather than passively tracking a benchmark. Active managers have long been plagued with persistence issues—meaning that few outperform indexes, and the ones that do aren’t likely to repeat that outperformance consistently—hindering the adoption of actively managed ETFs, which are often more expensive to own than their passive counterparts