CryptoAce
Sun Oct 06 2024
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7 answers
1862
Are exchange-traded funds passively managed?
Are exchange-traded funds (ETFs) indeed passively managed, or is there more nuance to their management style? I understand that ETFs track an index or benchmark, but does this automatically mean they are run without an active investment strategy? Are there any exceptions to this rule, where ETFs might involve some degree of active management? Furthermore, how does the passive management of ETFs differ from traditional mutual funds, which often have active managers making decisions on behalf of investors?
