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What are the advantages of the active ETF structure?

  • Describe some of the advantages of ETFs
  • Explain the liquidity process
  • Identify the tax treatment of ETFs
CPD
Approx.30min

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Future of active ETFs

The evolution of ETFs from simple benchmark-tracking vehicles to the realm of actively managed marks a significant shift (and opportunity) in the global ETF landscape. With the advent of active ETFs, the industry is increasingly embracing the flexibility and efficiency of the ETF wrapper. 

In addition, the introduction of actively managed products as ETFs has led to the creation of new product types altogether. 

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The momentum for active ETFs is not just in the US, but also in Europe, adapting to diverse regulatory and investor environments. 

Active ETFs will provide valuable perspectives on the industry’s integral role in harnessing innovation and shaping future investment trends.

Thomas Hartmann-Boyce is a client portfolio manager at Ark Invest

CPD
Approx.30min

Please answer the six multiple choice questions below in order to bank your CPD. Multiple attempts are available until all questions are correctly answered.

  1. Which regulation has spurred interest in active ETFs?

  2. What innovation in the ETF market led to their adoption?

  3. How do ETFs maintain liquidity?

  4. Investors themselves can buy or sell ETF shares at market prices at any time during trading hours, true or false?

  5. What eliminates trading-related capital gains or losses?

  6. Disruptive innovation is a regular theme of ETFs, true or false?

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  • Describe some of the advantages of ETFs
  • Explain the liquidity process
  • Identify the tax treatment of ETFs

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