Actively managed ETFs have been slow to catch on. Â Investors are smart enough to understand that one of the major benefits of ETFs is their low cost. Â The reason ETFs are so inexpensive is because they are passively managed, as opposed to actively. Â They are based on indexes, and there is very little human interaction involved.
Actively managed ETFs cost more because there is more human involvement in managing them. Â Humans are much more expensive than computers, so costs are higher. Â All that said, Wall Street continues to create, package, and push actively managed ETFs. Â Why? Â Because the profit margins are so high.
There are about 1,500 ETFs to choose from today, but only 60 of them are actively managed. Â If you are looking for an ETF that is managed by people, rather than machines, use this list as a jumping off point.