Actively managed exchange-traded funds offer the potential benefits of active management such as in-depth research with the goal of outperforming a benchmark. They also provide the advantages of the ETF vehicle, including intraday trading and the potential for lower costs.
 

Thanks to this unique combination of benefits, active ETFs can provide an efficient complement to existing allocations that allows investors to diversify their portfolios.
 

The active ETF market has expanded rapidly, topping $1 trillion in assets under management in 2024. A recent source of growth has been options-based products such as derivative-income and buffer funds that offer regular income or a measure of downside protection.