December 05, 2024
The service and experience to help you take your business further
Building modern multi-asset class portfolios with active ETFs
Key Takeaways
- Active ETFs seek different sources of return than index ETFs, but offer the same vehicle benefits.
- A wide variety of strategies for outperformance fall within the active ETF category, including quantitative and hybrid strategies, not just those driven by fundamental security selection.
- This variety of approaches offers varying levels of benchmark relative risk; the type of strategy you select and how you allocate your portfolio's risk budget can impact your potential for excess return.
- Active strategies may also allow investors to achieve objectives other than outperformance, such as increased diversification, higher income, or reduced volatility and/or drawdowns.
The most important insight of the day
Get the Harvest Daily Digest newsletter.