Active ETFs unwrapped

The active ETF era has arrived in full force. Though the exchange-traded wrapper was initially passively managed and filled with vanilla asset classes, it has evolved into a sophisticated, actively managed portfolio with exotic instruments. This complexity is an important part of this next ETF generation. In turn, the U.S. has seen its market share of actively managed ETFs increase, as have Europe and Asia. Now asset managers are evaluating how this complexity manifests in the real world in order to cater to end investors’ demands, which vary according to regional idiosyncrasies.

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