ETFs are continuing to grow exponentially in the number of offerings and assets under management.
Just last week, the U.S.-listed ETF market hit a new all-time high of $1.762 trillion, and the total number of funds is nearing 1,600.
With so many funds now in the mix, ETF providers are continuing to introduce innovative active strategies to compete with established passive indexes. While active management typically leads to creative portfolios, it also paves the way for higher fees to subsidize research, security selection and trading.
It’s natural to question whether or not paying a higher fee for active management will truly result in better performance over a passive benchmark. In some cases it certainly can result in better total return, while in others you may be throwing good money after bad.
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