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Sometimes, in order to gain an edge on the market, active management is a must even if the costs are a bit higher. Fortunately, the ETF industry understands and created actively managed ETFs.

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Explore Actively Managed ETFs with These 3 Providers

Sometimes, in order to gain an edge on the market, active management is a must even if the costs are a bit higher. Fortunately, the ETF industry understands and created actively managed ETFs.

One major difference between exchange-traded funds (ETFs) and mutual funds is that ETFs tend to be passively managed. This means they follow the components of a specific industry group, sector, index, etc. Compared to mutual funds that are actively managed, ETFs cost a lot less. Yet sometimes in order to gain an edge on the market, active management is a must even if the costs are a bit higher. Fortunately, the ETF industry understands and created actively managed ETFs.

Such actively managed ETFs are not merely re-indexed according to a formula on a quarterly or annual basis, but actively trade and sell the relevant underlying securities on a daily basis. Three of the firms currently featuring actively managed funds are AdvisorShares, Columbia Management and PIMCO. AdvisorShares has almost 30 ETFs in its portfolio; Columbia has five, while nine of PIMCO‚??s 21 ETFs are actively managed.

One of the asset classes used by all three firms in their actively managed ETF efforts is, interestingly enough, bonds. Bonds are typically considered fixed-income securities. But when bundled together and actively traded via an ETF, they are subject to some of the same trading pressures and changing valuation as stocks.

Read more about how these three actively managed exchange-traded funds could lead to profits at Eagle Daily Investor.

Written By

Doug Fabian is the editor of Successful Investing and High Monthly Income, and is the host of the syndicated radio show, "Doug Fabian's Wealth Strategies." Taking over the reigns from his dad, Dick Fabian, back in 1992, Doug has continued to uphold the reputation of the newsletter as the #1 risk-adjusted market timer as ranked by Hulbert‚??s Investment Digest. For more than 30 years, Successful Investing (formerly the Telephone Switch Newsletter) has produced double-digit annual gains. Doug has become known for his expert knowledge and timely use of innovative tools like Exchange Traded Funds, bear funds and Enhanced Index funds to profit in any market climate.

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Explore Actively Managed ETFs with These 3 Providers

One major difference between exchange-traded funds (ETFs) and mutual funds is that ETFs tend to be passively managed. This means they follow the components of a specific industry group, sector, index, etc. Compared to mutual funds that are actively managed, ETFs cost a lot less. Yet sometimes in order to gain an edge on the market, active management is a must even if the costs are a bit higher. Fortunately, the ETF industry understands and created actively managed ETFs.

Such actively managed ETFs are not merely re-indexed according to a formula on a quarterly or annual basis, but actively trade and sell the relevant underlying securities on a daily basis. Three of the firms currently featuring actively managed funds are AdvisorShares, Columbia Management and PIMCO. AdvisorShares has almost 30 ETFs in its portfolio; Columbia has five, while nine of PIMCO’s 21 ETFs are actively managed.

One of the asset classes used by all three firms in their actively managed ETF efforts is, interestingly enough, bonds. Bonds are typically considered fixed-income securities. But when bundled together and actively traded via an ETF, they are subject to some of the same trading pressures and changing valuation as stocks.

Read more about how these three actively managed exchange-traded funds could lead to profits at Eagle Daily Investor.

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