Active ETF Center
Welcome to the ETF Database Active ETF Center, a special section of ETFdb.com dedicated to providing information on actively-managed exchange-traded funds (ETFs). Active 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, including intraday liquidity, unparalleled transparency, and potential tax efficiencies.
As active ETFs have grown, there has been some confusion over both the potential limitations and advantages of these securities. The Active ETF Center is sponsored by Guggenheim, which debuted two actively-managed fixed income ETFs in June 2011. The content below is designed to educate investors on the nuances of active ETFs, from relatively simple concepts to the more in-depth underpinnings:
Actively-managed ETFs are the subject of a fair amount of confusion, as many advisors and investors are confused over various aspects of these securities related to management, disclosure requirements, and differences relative to traditional mutual funds.
While many perceive active ETFs as somewhat complex mechanisms that introduce additional risk factors and structural underpinnings, in reality they are rather simple instruments that can offer exposure to attractive active management strategies along with all the benefits of the exchange-traded structure available through passively-indexed products. This piece addresses several of the most commonly asked questions surrounding active ETFs, from disclosure risks to myths about expenses.
Bond ETFs have become increasingly popular in recent years, as more and more advisors have embraced the exchange-traded structure as a means of establishing fixed income exposure within client portfolios. This movement is part of a larger trend, as investors have embraced a vehicle that features low expense ratios and potential tax efficiencies across a variety of asset classes.
While the combination of fixed income exposure and ETFs yields some significant advantages, this marriage also has the potential to expose assets to certain biases and return drags that may ultimately result in a less-than-optimal investing experience. In this article, we dive into some of the ramifications of achieving fixed income exposure through a passively-indexed product, highlighting the potential pitfalls of passive bond ETFs.
When discussing various options for achieving exposure to an asset class, some investors show a lack of understanding by comparing “ETFs vs. active management” or the merits of “mutual funds vs. passive indexing strategies.” While active ETFs are seen often viewed as securities that are similar to traditional mutual funds, the reality is that there are significant structural differences between the two that often have a major impact on risk, return, and investor experience.
This articles compares active ETFs with traditional mutual funds, highlighting the few similarities and many differences, and discussing the ramifications of these distinctions on a portfolio’s bottom line.
From the first introduction of active ETFs in 2006 (and the launch of what many consider to be the first true active ETF in 2009), this corner of the exchange-traded universe has grown tremendously. For investors seeking out actively-managed ETFs in any asset class, this resource provides a complete listing of all the options, as well as information on the fund benchmark and expenses.
This list will be updated regularly with new fund launches, highlighting additions to the rapidly-expanding active ETF lineup in real time.
In June 2011 Guggenheim launched its first active ETF products, overhauling a pair of indexed fixed income ETFs that had been around since early 2008. The new products include the Guggenheim Enhanced Core Bond ETF (GIY), which offers exposure to broad investment grade bond markets, and the Guggenheim Enhanced Ultra-Short Bond ETF (GSY), which focuses on shorter-term investment grade debt and may be appealing for investors looking for a safe place to park cash.
Both ETFs charge an expense ratio of 0.27%, making them the cheapest actively-managed ETFs on the market: