31 Actively Managed ETFs (2024)

FAQs

What is the best actively managed ETF? ›

With 1446 ETFs traded on the U.S. markets, Active Management ETFs have total assets under management of $661.29B. The average expense ratio is 0.71%. Active Management ETFs can be found in the following asset classes: Fixed Income.

The Invesco QQQ ETF is an exchange-traded fund (ETF) that tracks the Nasdaq 100 Index. Because it passively follows the index, the QQQ share price goes up and down along with the tech-heavy Nasdaq 100. Passive management keeps fees low, and investors are rewarded with the full gains of the volatile index if it rises.

Active management seeks to outperform the average returns of the financial market. Vanguard has both index and active ETFs. Vanguard has both index mutual funds and actively managed funds. The strategy of investing in multiple asset classes and among many securities in an attempt to lower overall investment risk.

But to be clear, Ramsey's all in favor of using ETFs when used properly. For investors who can use ETFs as part of a long-term, buy-and-hold investment program, rather than as trading vehicles, Ramsey has nothing bad to say about them.

An actively managed ETF is an exchange-traded fund with a manager or team making decisions about the holdings. Generally, an actively managed ETF does not adhere to any passive investment strategy. Many actively managed ETFs track a benchmark index, but managers may deviate from it as they see fit.

Generally speaking, fewer than 10 ETFs are likely enough to diversify your portfolio, but this will vary depending on your financial goals, ranging from retirement savings to income generation.

Experts agree that for most personal investors, a portfolio comprising 5 to 10 ETFs is perfect in terms of diversification.

In the past year, QQQ returned a total of 32.22%, which is higher than VOO's 28.12% return. Over the past 10 years, QQQ has had annualized average returns of 18.60% , compared to 12.80% for VOO. These numbers are adjusted for stock splits and include dividends.

Which ETF has the best 10 year return? ›

BlackRock Advantage Large Cap Income ETF

Leveraging BlackRock's Systematic Active Equity Platform, BALI is an actively managed US large cap equities ETF seeking to provide a combination of enhanced income and market participation with lower volatility than the broader U.S. equity market.

Vanguard High Dividend Yield ETF (VYM)

The better Vanguard ETF for their needs is likely VYM, which delivers a higher 2.9% 30-day SEC yield by targeting the FTSE High Dividend Yield Index. It also charges the same expense ratio as VIG does, at 0.06%.

Potential to outperform: The main benefit to invest in active ETFs is because of their potential outperformance. A talented portfolio manager may be able to add value over time by selecting the right investments, but as with any investment, there's no guarantee that will happen.

Managed Funds are better for investing smaller amounts more frequently as they don't incur brokerage costs, giving your money the chance to accumulate market gains more quickly than ETFs.

For these traders, there are more than 170 leveraged funds in the space targeting different asset classes. ProShares UltraPro QQQ is the most popular and liquid ETF in the leveraged space, with AUM of $21.9 billion and an average daily volume of 67.3 million shares a day.

When things go well, actively managed funds can deliver performance that beats the market over time, even after their fees are paid. But investors should keep in mind that there's no guarantee an active fund will be able to deliver index-beating performance, and many don't.