We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Gone are the days when investors preferred passively managed funds due to their low fee structure. Active funds are gaining precedence lately. The money outflow from active funds has fallen to its slowest pace since 2014, according to a report from Bank of America strategists, as quoted on barrons.com. Active funds’ performance has improved substantially, the research says.
Per ETFGI, record assets and net inflows of $404 billion and $88 billion, respectively, in active ETFs globally were noticed at the end of July. Actively managed ETFs and ETPs amassed net inflows of $6.00 billion during July, bringing year-to-date net inflows to a record $88.23 billion.
Notably, an actively-managed ETF does have a benchmark index but managers may alter sector allocations, market-time trades or shift from the index constituents if they consider it appropriate, per investopedia.
Investors should note that active funds are arguably expensive as these involve research expenses associated with the manager’s due diligence and additional cost in the form of a wide bid/ask spread beyond the expense ratio.
Return-wise as well, active ETFs are not far behind. Some actively managed ETFs have outperformed the SPDR S&P 500 ETF SPY (up about 20%) this year. Below we highlight some of the top-performing active ETFs of this year that breezed past the S&P 500.
The InfraCap MLP ETF seeks total return primarily through investments in equity securities of publicly-traded master limited partnerships and limited liability companies taxed as partnerships. The expense ratio of the fund is 2.01% annually.
Amplify Transformational Data Sharing ETF (BLOK - Free Report) – Up 41.8%
The Amplify Transformational Data Sharing ETF is an actively managed ETF that seeks to provide total return by investing at least 80% of its net assets in the equity securities of companies actively involved in the development and utilization of transformational data sharing technologies. The expense ratio of the fund is 0.71% annually.
The Cambria Shareholder Yield ETF utilizes a quantitative approach to invest in U.S. equities with high cash distribution characteristics. The fund charges 59 bps in fees.
Invesco Optimum Yield Diversified Commodity Strategy No K-1 ETF (PDBC - Free Report) – Up 31.78%
The Invesco Optimum Yield Diversified Commodity Strategy No K-1 ETF is an actively managed exchange-traded fund that seeks to achieve its investment objective by investing in commodity-linked futures and other financial instruments that provide economic exposure to a diverse group of the most heavily traded commodities. The fund charges 59 bps in fees.
AdvisorShares Dorsey Wright Micro-Cap ETF – Up 31.72%
The AdvisorShares Dorsey Wright Micro-Cap ETF is an actively managed ETF that seeks long-term capital appreciation by investing in exchange-listed, micro-cap equities with sufficient liquidity. The expense ratio of the fund is 1.32% annually.
Avantis U.S. Small Cap Value ETF (AVUV - Free Report) – Up 31.43%
The Avantis U.S. Small Cap Value ETF seeks long-term capital appreciation by investing primarily in a diverse group of U.S. small cap companies across market sectors and industry groups. The product charges 25 bps in fees.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Active ETFs in Favor: Top Performers of This Year
Gone are the days when investors preferred passively managed funds due to their low fee structure. Active funds are gaining precedence lately. The money outflow from active funds has fallen to its slowest pace since 2014, according to a report from Bank of America strategists, as quoted on barrons.com. Active funds’ performance has improved substantially, the research says.
Per ETFGI, record assets and net inflows of $404 billion and $88 billion, respectively, in active ETFs globally were noticed at the end of July. Actively managed ETFs and ETPs amassed net inflows of $6.00 billion during July, bringing year-to-date net inflows to a record $88.23 billion.
Notably, an actively-managed ETF does have a benchmark index but managers may alter sector allocations, market-time trades or shift from the index constituents if they consider it appropriate, per investopedia.
Investors should note that active funds are arguably expensive as these involve research expenses associated with the manager’s due diligence and additional cost in the form of a wide bid/ask spread beyond the expense ratio.
Return-wise as well, active ETFs are not far behind. Some actively managed ETFs have outperformed the SPDR S&P 500 ETF SPY (up about 20%) this year. Below we highlight some of the top-performing active ETFs of this year that breezed past the S&P 500.
ETFs in Focus
InfraCap MLP ETF (AMZA - Free Report) – Up 49.37%
The InfraCap MLP ETF seeks total return primarily through investments in equity securities of publicly-traded master limited partnerships and limited liability companies taxed as partnerships. The expense ratio of the fund is 2.01% annually.
Amplify Transformational Data Sharing ETF (BLOK - Free Report) – Up 41.8%
The Amplify Transformational Data Sharing ETF is an actively managed ETF that seeks to provide total return by investing at least 80% of its net assets in the equity securities of companies actively involved in the development and utilization of transformational data sharing technologies. The expense ratio of the fund is 0.71% annually.
Cambria Shareholder Yield ETF (SYLD - Free Report) – Up 37.8%
The Cambria Shareholder Yield ETF utilizes a quantitative approach to invest in U.S. equities with high cash distribution characteristics. The fund charges 59 bps in fees.
Invesco Optimum Yield Diversified Commodity Strategy No K-1 ETF (PDBC - Free Report) – Up 31.78%
The Invesco Optimum Yield Diversified Commodity Strategy No K-1 ETF is an actively managed exchange-traded fund that seeks to achieve its investment objective by investing in commodity-linked futures and other financial instruments that provide economic exposure to a diverse group of the most heavily traded commodities. The fund charges 59 bps in fees.
AdvisorShares Dorsey Wright Micro-Cap ETF – Up 31.72%
The AdvisorShares Dorsey Wright Micro-Cap ETF is an actively managed ETF that seeks long-term capital appreciation by investing in exchange-listed, micro-cap equities with sufficient liquidity. The expense ratio of the fund is 1.32% annually.
Avantis U.S. Small Cap Value ETF (AVUV - Free Report) – Up 31.43%
The Avantis U.S. Small Cap Value ETF seeks long-term capital appreciation by investing primarily in a diverse group of U.S. small cap companies across market sectors and industry groups. The product charges 25 bps in fees.