The table below summarizes the key structure of Actively managed ETFs vs traditional ETFs and mutual funds.
Feature | Active ETF | Index ETF | Mutual Fund |
---|---|---|---|
Marginable | YES | YES | NO |
Shortable | YES | YES | NO |
Tax Efficient* | YES | YES | MAYBE |
Trades Intraday | YES | YES | NO |
Active Professional Management | YES | NO | MAYBE |
Passive Management | NO | YES | MAYBE |
*ETFs are, however, subject to commission costs each time you buy or sell.