immagine del profilo
You would have to look at the products in detail. In itself, there is nothing wrong with actively managed funds as an admixture, as long as they are rule-based.
There are still many inefficiencies that can potentially be "harvested", particularly in the small caps and emerging markets sectors.

Let's see what comes next, competition is known to stimulate business. 😘
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immagine del profilo
Is there a definition for "active ETFs"? It seems to be a buzzword that can sometimes be misleading.
For example, on its German website, Fidelity describes some of its products as "passive ETFs with an active twist". If you take a closer look, all that remains is "active research".
So what exactly is an active ETF?
immagine del profilo
@randomdude I would rather prefer a passive index-tracking ETF.
BUT there are factors you can't invest in because there is no passive product for EU citizens.
Emerging markets momentum or small-cap momentum, for example.
There is an index from MSCI but no ETF.
If an active fund could tap into these factors, I would buy it. 😉
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immagine del profilo
@randomdude BTW: There’s no such thing as „passive research“, right? 😅
1
immagine del profilo
@randomdude Depends on the definition, but from my gut feeling I would say NO.
1
immagine del profilo
@PowerWordChill yup absolutely. I’m excited, but product data and analysis will come first and foremost, and the UCITS versions might not be the beasts they are in the US. Also, we don’t know the TER, which will be another huge deciding factor, at least for me personally.
They should be active but rule based and with open datasets IIRC. I’ll see if I can find the link to the RR analysis again, too much content there and I have too many bookmarks and read lists 😅
2
immagine del profilo
@PowerWordChill
Joah.... could then take a closer look at the international small-caps ETF

https://www.avantisinvestors.com/avantis-investments/avantis-international-small-cap-value-etf/

Greetings
🥪
1
immagine del profilo
@PowerWordChill actually managed to find it reasonably fast https://www.pwlcapital.com/wp-content/uploads/2020/12/Five-Factor-Investing-with-ETFs.pdf
This is one of the original RR papers, AVUV (Russel 2000 value index) and AVDV (MSCI sc ex us) at p22-23
We as European might get a fund based on Global, so MSCI world SC as a benchmark (?), here’s the LEI https://www.leiregister.is/leicert/635400EGRRZCUPDDHH38/

I’ll post updates when they get through the grapevines :)
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