What happens when I invest in an Active ETF or Exchanged Quoted Managed Fund (EQMF)?
When you invest in an Active ETF you are investing in a portfolio of many different assets. The Active ETF is actively managed by a portfolio manager and investment team. You will receive distributions of the fund’s net income.
Active ETFs are actively managed by a portfolio manager and investment team to generate alpha and outperform a set benchmark. To invest in an Active ETF you will need to buy some units using your broker. You will also pay a management fee which is usually included in the unit price and in return for investing in the Active ETF you will receive distributions of the Active ETF's net income.
Investing in an Active ETF means that you will own units in the fund but not the underlying securities or derivatives themselves.