Exchange-Traded Funds (ETFs) have become a cornerstone of modern investment portfolios. Offering diversification, liquidity, and low minimum investment thresholds, ETFs cater to a wide range of investor profiles. However, ETFs aren’t all made the same— and under the hood of each fund lies a complex world of diverse investment strategies, risk profiles, and underlying assets.
For investors the decision between an active or passive ETF is a crucial one. This distinction significantly impacts potential returns and overall investment strategy.