As one of the fastest growing segments of the already fast-growing ETF market, actively-managed ETFs could open up a whole new set of strategies - both betting on and against managers. ETFs- exchange-traded-funds- are already known as a more transparent, tax-efficient and liquid way to buy indices. They have these advantages as opposed to the commissions, spreads of trading which are now required to buy (full comparison). Increasingly, the costs are being outweighed by the benefits.
In my opinion, however, the key attribute that has led to ETFs' success is its liquidity/transparency. Like a shiny new machine in the casino, ETFs (such as DXJ) promised even faster trades and up to date pricing that make (or break) entire companies. With this in mind, will the next generation of active etfs allow for investors/speculators to hedge their managers?
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