What are actively managed ETFs?

The original concept for ETFs was to have them mimic an underlying index and to change if and when the underlying index was changed. Some ETF providers have also offered actively managed ETFs that operate closely to the concept of a mutual fund. These ETFs have an active manager or committee making investment decisions, often with the objective of outperforming rather than tracking the underlying index. Effectively they are a mutual fund dressed up as an ETF.

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