Active ETFs have grown exponentially in recent years, especially in the equity space. One of the big benefits of that for investors in more investment strategies to choose from. The challenge, though, is that is can be hard to filter through them all to find the right strategy for a specific need. In this episode, we try to help solve that problem. We walk through the key criteria we look at when evaluating active ETFs from both and investing and financial planning perspective. We also work through some examples to show how we do it in practice.
#activeetfs #etfs #factorinvesting
00:00 - Intro
02:19 - Why the passive vs. active ETF distinction is not that meaningful
05:16 - The need for a coherent plan
12:34 - Is the investment strategy sensible?
15:31 - The tools to analyze active ETFs
16:51 - How to look at ETF fees
20:48 - The role of trust
27:17 - Portfolio size and weighting
31:06 - Sector exposure
34:30 - Rebalancing frequency
39:45 - How to evaluate ETF liquidity
43:02 - What is active share and why does it matter?
46:30 - Evaluating factor exposures
48:55 - Active share and fees
50:37 - Looking at some example ETFS
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