##  [# Active Management Definition](/sections/active-management-definition) 

 

# Active Management Definition

 

 

Learn the definition of active management and other ETF terminology from the etf.com glossary.



 

 

 

 

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[By ETF Glossary](/authors/etf-glossary)

 Dec 04, 2023

 Edited by: ETF.com Staff

 

 

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## Learn more about Active Management

An actively managed ETF is an exchange-traded fund that has a portfolio manager who makes decisions about which securities to buy and sell. This differs from passively managed ETFs, which simply track a particular benchmark index or asset. Actively managed ETFs can be more expensive than passively managed ETFs, but they also have the potential to outperform the market. Actively managed ETFs are a good option for investors who are looking for a more hands-off approach to investing. They can also be a good choice for investors who believe that a professional portfolio manager can beat the market. However, it is important to remember that past performance is not necessarily indicative of future results.

### Related Terms

[Passive Management](/etf-education-center/etf-glossary/passive-management), [Nontransparent Active ETF](/etf-education-center/etf-glossary/nontransparent-active-etf), [Alpha](/etf-education-center/etf-glossary/alpha), [Smart Beta ETF](/etf-education-center/etf-glossary/smart-beta-etf)

 
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 [ ETF Glossary ](/authors/etf-glossary) 

 

 

  ETF Glossary is etf.com’s collection of key terms and definitions related to exchange-traded funds. ETFs are investment funds that are traded on stock…   [View Bio](/authors/etf-glossary)

 



 

 


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