ETFs have become increasingly popular in the wake of the financial crisis because of the advantage they offer in terms of liquidity, transparency, and cost, but in the past they have only provided a cheap beta investment. Actively managed ETFs change that by giving a management team the right to trade the underlying stocks. You’re no longer guaranteed returns in-line with the underlying index, but you get to implement more complex strategies while keeping all the advantages that have made passive ETFs popular.

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