The Evolution of ETFs: From Passive Tools to Active Powerhouses
Exchange-Traded Funds have transitioned from humble index-tracking instruments to sophisticated vehicles capable of executing institutional-grade strategies. The US market now boasts more actively managed ETFs (2,226) than passive ones (2,157), signaling a fundamental shift in investor demands.
While traditional approaches like Dollar-Cost Averaging remain foundational, competitive portfolios now require systematic optimization techniques. The next frontier involves mechanical, rules-based methods to generate alpha, manage risk with precision, and enhance tax efficiency—moving decisively beyond simple buy-and-hold philosophies.