5 Proven Tricks to Identify Undervalued Actively Managed ETFs

The actively managed ETF market has surged past $1 trillion in assets under management in 2024, with nearly 75% of new ETF launches in 2023 being actively managed. These funds combine the strategic agility of traditional portfolio management with the transparency and liquidity of ETFs, offering daily holdings disclosure and intraday trading. Investors are increasingly drawn to their potential for outperformance, particularly in volatile markets.

Unlike passive index trackers, active ETFs leverage professional managers' expertise to target specific benchmarks or investment goals. Their lower minimum investment thresholds have democratized access, appealing to a broader retail investor base. The sector's growth reflects a shift toward strategies designed to navigate complex market conditions and deliver alpha.