What are the main benefits of an Active ETF or Exchanged Quoted Managed Fund (EQMF)?
- Buying or selling is efficient as it can be done via an exchange such as the ASX, the exact same way as buying a share.
- It delivers easy accessibility to active investment management capabilities, and has the potential to outperform a benchmark.
- Provides high transparency regarding pricing, with more frequency than traditional managed fund prices.
- With live pricing, investors can choose what price they invest in the Active ETF
- Tax reporting and portfolio administration is made easier, as Active ETFs can be managed and reported amongst other broker holdings.
- Active ETFs have the ability to offer a diversified portfolio, which offers differentiation that is difficult for retail investors to access.
- Active investing means that the Active ETF will actively seek to minimise losses during market downturns instead of passively following the benchmark