The Benefits of Active ETFs, Presented by Capital Group | American Funds

While exchange-traded funds (ETFs) have been around for nearly three decades, active ETFs may still be in the early stages of their growth. As of December 31, 2023, there were $7.64 trillion assets under management (AUM) in passive ETFs, or 94% of total ETF AUM, and three of the top five largest ETFs — all passive — offered exposure to the S&P 500. While these strategies may be a low-cost way to participate in market-like returns, they don’t allow investors the opportunity to pursue better-than-average returns and may not offer protection against downside risk. Join us to learn more about the evolution of the ETF industry and how active ETFs may be a better solution for your client portfolios. We will unpack the types and variations of active ETFs and provide some insights on what to consider in your selection process.