Battle of the Strategies: Active vs Passive Investing

You’ve probably heard the terms passive and active ETFs. But what exactly do they mean? Let’s take a closer look.

A passive ETF is an investment fund designed to mirror a particular index, such as the S&P 500, in an effort to match the index’s return. 

Passive ETFs tend to have lower fees because a passive fund manager isn’t actively selecting securities. 

However, a passive ETF can’t deviate from the index’s holdings, so investors may be sacrificing the opportunity for above-market returns.

Actively managed ETFs are the fastest-growing segment in the ETF industry – and for good reason.

Unlike passive funds, active ETFs rely on professional fund managers who use research and analysis to select investments with the goal of beating the index while also managing risk. 

While active ETFs generally have higher fees, many of today’s active ETFs provide access to fully discretionary active management at extremely competitive prices. 

The Dynamic Active ETF Advantage

Dynamic® believes in the power of Legitimately Active Management®. While other money managers are holding, Dynamic is going beyond the benchmark to find opportunities and mitigate risk. Because you can’t beat the index if you are the index.

From equities and fixed income to unique all-in-one ETF portfolios, Dynamic Active ETFs provide a wide range of timely, innovative and active solutions.

Find out more about the Dynamic Active ETF Advantage today.

 

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