Cryptocurrency Q&A
Are exchange-traded funds passively managed?
Are exchange-traded funds passively managed?
CryptoAce
Sun Oct 06 2024
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7 answers
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Are exchange-traded funds (ETFs) indeed passively managed, or is there more nuance to their management style? I understand that ETFs track an index or benchmark, but does this automatically mean they are run without an active investment strategy? Are there any exceptions to this rule, where ETFs might involve some degree of active management? Furthermore, how does the passive management of ETFs differ from traditional mutual funds, which often have active managers making decisions on behalf of investors?
7 answers
LitecoinLodestar
Tue Oct 08 2024
Exchange-traded funds, or ETFs, have become increasingly popular in recent years due to their ease of trading and diverse investment options.
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Maria
Tue Oct 08 2024
The majority of ETFs are passively managed, meaning they track a specific index and aim to replicate its performance.
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CherryBlossom
Tue Oct 08 2024
This approach allows investors to gain exposure to a broad range of assets without having to actively manage their portfolios.
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SsangyongSpiritedStrength
Tue Oct 08 2024
However, there is a small but growing segment of the ETF market that is actively managed.
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Silvia
Mon Oct 07 2024
These funds, which account for roughly 2% of the $3.9 billion ETF industry, offer many of the same advantages as mutual funds.
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