ETFdb Logo
  • ETF Database
  • Channels
    • Themes
      • Active ETF
      • Alternatives Channel
      • Artificial Intelligence
      • China Insights
      • Climate Insights
      • Core Strategies
      • Crypto
      • Disruptive Technology
      • Energy Infrastructure
      • ETF Building Blocks
      • ETF Education
      • ETF Investing
      • ETF Strategist
      • Faith-Based Investing
      • Financial Literacy
      • Fixed Income
      • Free Cash Flow
      • Innovative ETFs
      • Invest Beyond Cash
      • Leveraged & Inverse
      • Modern Alpha
      • Portfolio Strategies
      • Tax Efficient Income
    • Asset Class
      • Equity
        • U.S. Equity
        • Int'l Developed
        • Emerging Market Equities
      • Alternatives
        • Gold/Silver/Critical Materials
        • Crypytocurrency
        • Currency
        • Volatility
      • Fixed Income
        • Investment Grade Corporates
        • US Treasuries & TIPS
        • High Yield Corporates
        • Int'l Fixed Income
    • ETF Ecosystem
    • ETFs in Canada
    • Market Outlook
  • Tools
    • ETF Screener
    • ETF Country Exposure Tool
    • ETF Database Categories
    • Indexes
    • Scenario Analysis
    • Watchlists
    • Head-To-Head ETF Comparison Tool
    • Mutual Fund To ETF Converter
    • ETF Stock Exposure Tool
    • ETF Issuer Fund Flows
  • Research
    • ETF Education
    • Equity Investing
    • Dividend ETFs
    • Leveraged ETFs
    • Inverse ETFs
    • Index Education
    • Index Insights
    • Top ETF Sectors
    • Top ETF Issuers
    • Top ETF Industries
  • Webcasts
  • Themes
    • AI ETFs
    • Blockchain ETFs
    • See all Thematic Investing ETF themes
    • ESG Investing
    • Marijuana ETFs
  • Multimedia
    • ETF 360 Video Series
    • ETF of the Week Podcast
    • Gaining Perspective Podcast
    • ETF Prime Podcast
    • Video
  • Company
    • About VettaFi
    • Get VettaFi’ed
  • PRO
    • Pro Content
    • Pro Tools
    • Advanced
    • FAQ
    • Pricing
    • Free Sign Up
    • Login
  1. Active ETF Channel
  2. Three Keys to Active ETF Investing in 2023
Active ETF Channel
Share

Three Keys to Active ETF Investing in 2023

Nick Peters-GoldenJun 01, 2023
2023-06-01

Investors have plenty of tools to tackle market upheaval, but few compare to the power of a well-managed active ETF. Active ETFs have come a long way since the ETF rule dropped in 2019, taking strides this year, too. For investors considering an allocation, consider three keys to active ETF investing that have emerged so far in 2023.

Active ETF Investing Trends

First off, investors may be familiar with the idea of the ETF wrapper as a vessel for stocks — but what about their tradability? Investors should consider how ETF trading spreads compare to trading the stocks inside the ETF. Actively trading individual stocks in a given asset class can really add up in spread cost. By trading an active ETF backed by managers specializing in an asset class, investors can save on spread cost.

Secondly, investors and advisors should take note of the rising tide of interest in active ETFs overall. Previously, mutual fund mavens and longtime market watchers had been concerned about liquidity in ETFs. Those concerns don’t go away overnight, but rising interest in active ETFs may equip those strategies with more overall liquidity.

While some investors may flock to massive, inflexible index funds, flexible, dedicated active ETFs are picking up interest – and assets. A growing list of available active ETF investing options helps, too.

See more: More Institutional Investors Could Use Active Management

Finally, advisors and investors should keep an eye on how active ETFs can play the rebound in fixed income. Fixed income struggled for a while in a red hot disruptive tech and e-commerce market. Rising rates have resurrected the “income” part of the equation, and active strategies are poised to harvest those yields. With so much uncertainty surrounding the yield curve, the Fed’s plans, and the dollar, active ETFs offer a valuable tool.

T. Rowe Price offers a roster of active ETFs investing in different asset classes. The firm’s managers average more than 20 years of experience as part of T. Rowe’s 80 years in investing overall. Investors can consider active strategies like the T. Rowe Price Blue Chip Growth ETF (TCHP C+) and the T. Rowe Price U.S. High Yield ETF (THYF A-).


Content continues below advertisement

For more news, information, and analysis, visit our Active ETF Channel.

Loading Articles...
Our Sites
  • VettaFi
  • Advisor Perspectives
  • ETF Trends
Tools
  • ETF Screener
  • Mutual Fund to ETF Converter
  • Head-To-Head ETF Comparison
  • ETF Country Exposure Tool
  • ETF Stock Exposure Tool
  • ETF Database Pro
More Tools
  • Financial Advisor & RIA Center
Explore ETFs
  • ETF News
  • ETF Category Reports
  • Premium Articles
  • Alphabetical Listing of ETFs
  • Browse ETFs by ETF Database Category
  • Browse ETFs by Index
  • Browse ETFs by Issuer
  • Compare ETFs
Information
  • Contact Us
  • Terms of Use and Privacy Policy
  • © 2025 VettaFi LLC. All rights reserved.

Advertisement

Is Your Portfolio Positioned With Enough Global Exposure?

ETF Education Channel

How to Allocate Commodities in Portfolios

Tom LydonApr 26, 2022
2022-04-26

A long-running debate in asset allocation circles is how much of a portfolio an investor should...

Core Strategies Channel

Why ETFs Experience Limit Up/Down Protections

Karrie GordonMay 13, 2022
2022-05-13

In a digital age where information moves in milliseconds and millions of participants can transact...

}
X