The active-passive paradox

To some, the concept of an active ETF is an oxymoron on a par with controlled chaos, open secret, or alcohol-free vodka. But others see nothing contradictory in combining the virtues of an ETF with the benefits of active fund management. Perhaps the concept is an investment equivalent of marmite; some love it, while others hate it. Before going any further, it would make sense to define what is meant by active in this context. Many ETFs passively track a market index such as the FTSE 100 or the S&P 500, but it can be argued that tracking some indices, such as those weighted according to ...