(@FIRE55) on getquin

FIRE55

@FIRE55

5Mon·

Active ETFs - really outstanding, but what are the risks?

Hello everyone -

I added the active ETF to my portfolio last year $216361 (+0.25%) last year and am continuing to build up the position.

Who of you has experience with such active ETFs. In my view, these track an index but aim to outperform it by having fund managers develop specific strategies for targeted deviation in order to regularly adjust the fund composition.

One advantage for investors is that active ETFs are cheaper than traditional actively managed funds that are not traded on an exchange.

When I look at this comparatively, active ETFs do surprisingly well and deliver really good annual returns. In addition to Ossian, active ETFs are also available from Fidelity International, Invesco and JP Morgan Assets.

The benchmark with the MSCI $IWDA (+1.17%) is also impressive.

Addition: Thanks for the first comments; therefore also getquin benchmark to $VUSA (+1%) ...

What risks do you see with active ETFs compared to passive ones?

27 Comments

Beat The Bank@randomdude

5Mon

Very interesting! I will take a closer look at this ETF. Two quick questions/hints:
From my point of view, the S&P 500 or an MSCI USA would be the right benchmark. 100% USA should only be compared with 100% USA.
And the description of the ETF at getquin actually sounds very passive. The ETF tracks an index that is apparently rule-based. Do you know more about this?

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Rmann@Epi

5Mon

Active strategies have the peculiarity that many sometimes work well and sometimes less well. In the long term and on average, this strategy is unlikely to outperform the passive S&P500 according to TER.
This is a real problem with active strategies: the potential outperformance is eaten up by the higher costs. At the end of the day, active ETFs can certainly be used, but you should not expect a clear advantage over passive ones.

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Tino@parlania

5Mon

Over 5 years no real outperformance against S&P500 ... well ...
Stay with the $VUSA

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Rmann@Epi

5Mon

“The conflict of interest in the industry isn’t about indexing vs. active management. It’s cost.” – John Bogle

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M47@Jiyanask

5Mon

Is the 0.65% TER also taken into account in the benchmark?

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Vanguardium LeviOsa 🥪@Stullen-Portfolio

5Mon

I'm very pleased, @FIRE55, that there is actually a second person here who also invests in this ETF. I am really very convinced of its approach and it is a central component of my ETF combination (incidentally, it is also the largest component).

The question of whether it is active or passive has already been asked in your thread here. If it is actually relevant overall: because it invests strictly rule-based and fund managers do not make individual decisions, it is passive for me.

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