Why Are Active Funds Beating Passive Funds?

Also, a groundbreaking private credit ETF is proposed.

In this episode of Exchange Traded Fridays, the etf.com team discusses how active funds have outperformed their passive counterparts over the past year while Head of U.S. ETF Capital Markets at John Hancock Investment Management Ryan Wellman explains how investors can choose which active ETFs to consider for their portfolios.

Active management doesn’t have the best reputation, especially with investors who favor index-based funds. But a new Morningstar report shows that, as a whole, active funds have beaten their passive counterparts over the past year. 

To be sure, one year doesn’t make a trend, and the relative performance of active funds versus passive funds over longer periods of time is more underwhelming.

But even over the past 10 and 15 years, there are categories in which active is beating passive. 

Join etf.com’s Jeff Benjamin, Sumit Roy, Kent Thune and DJ Shaw as they discuss Morningstar’s new report, as well as a new private credit ETF that opens a massive new investment opportunity for investors.