What You Need to Know About Active ETFs

Nigam, Shishir
June 2011
Journal of Financial Planning;Jun2011, Vol. 24 Issue 6, p34
Academic Journal
The article offers information about actively managed exchange-traded funds (ETFs) which was first launched by the Bear Stearns Cos. Inc. in the U.S. investment industry. The author states that active ETFs are more comparable to active mutual funds. She states that compared to active mutual funds, it has greater liquidity, greater transparency, higher tax efficiency, and lower cost. The U.S. Securities & Exchange Commission (SEC) requires active ETFs to provide daily disclosure of their holdings. She stresses that the success of the ETFs can be determined by how well investors and advisers work on its innovation.


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