Hello everyone! Today I’m going to talk about the main difference between active and passive ETF. We explained the benefits of ETFs when it comes to investing and, now it’s worth talking about a growing investment choice: active ETF.
In short, active ETFs are more expensive.
I’ve done the research on various ETF providers to grasp the benefits of active ETFs. Here’s my findings:
-Potential for better performance
-Dynamic diversification & stock selection.
It looks great, it means portfolio managers look out for the best companies to provide better performance. Based on my research, active ETF fees range between 0.20 and 0.25%.
I have a preference for low-cost ETF. Investing is a long journey and fees compound over the years.
In my opinion ETF fees should stand around 0.10%, that’s an attractive price for small investors. Also, remember that a few ISA providers charge 0.25% for safekeeping investment portfolios.
I hope you enjoyed reading this paper,
Cheers
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