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Low costs, potential gains increasingly drawing investors to active ETFs

The article from The Globe and Mail discusses the growing interest in actively managed ETFs in Canada, driven by their potential for higher returns and lower costs compared to traditional mutual funds. Investors are increasingly drawn to these ETFs due to their ability to outperform passive index funds, especially in volatile or inefficient markets. The piece highlights that while passive ETFs have dominated the market for years due to their low fees and simplicity, active ETFs are gaining traction as they offer professional management and the flexibility to adapt to market changes. Key points include the introduction of new active ETFs by major financial institutions, the appeal of active management in navigating complex market conditions, and the competitive fee structures that are making these products more accessible to retail investors. The article also notes that despite the advantages, active ETFs still need to prove their long-term performance consistency to fully win over investors accustomed to the predictable nature of passive investments.

Read the Full The Globe and Mail Article at [ https://www.theglobeandmail.com/investing/article-low-costs-potential-gains-increasingly-drawing-investors-to-active/ ]