Hi there!
Yes there are. While most ETFs are index funds, there are ETFs that are actively managed.
These ETFs have a portfolio manager or team making decisions on the underlying portfolio allocation. Having said that, an actively managed ETF can also track a benchmark index such as the S&P 500/MSCI or the STI, but managers may change sector allocations, time their trades and deviate from the index if they deem appropriate, producing investment returns that may not perfectly mirror the underlying index.
In fact, actively managed ETFs have become increasingly popular in recent years, as investors have embraced these vehicles as a means of combining the talents of experienced and professional management teams with the benefits of the exchange-traded structure.
Hi there!
Yes there are. While most ETFs are index funds, there are ETFs that are actively managed.
These ETFs have a portfolio manager or team making decisions on the underlying portfolio allocation. Having said that, an actively managed ETF can also track a benchmark index such as the S&P 500/MSCI or the STI, but managers may change sector allocations, time their trades and deviate from the index if they deem appropriate, producing investment returns that may not perfectly mirror the underlying index.
In fact, actively managed ETFs have become increasingly popular in recent years, as investors have embraced these vehicles as a means of combining the talents of experienced and professional management teams with the benefits of the exchange-traded structure.