I read an article this morning in the WSJ about actively managed ETFs becomming the hot, new thing. So…what’s everyones opinion on these little buggers?
That they defeat the whole purpose of ETF’s. They are many ways one can build a strong diversified portfolio that has good long term growth potential by purchasing a growth ETF, emerging makret ETF, tech ETF or just a sector you feel is undervalued
They might have uses, but there are extra risks because you don’t know what the strategy is completely and whether there is style drift going on. They could be a way for joe blow to get access to hedge-fund like strategies (if regulations permit it) without a minimum of $250 k or so, and more interestingly, you could potentially short them too.