PT - JOURNAL ARTICLE AU - Steven D. Dolvin TI - An Update on the Performance of Actively Managed Etfs AID - 10.3905/jii.2014.4.4.010 DP - 2014 Feb 28 TA - The Journal of Index Investing PG - 10--18 VI - 4 IP - 4 4099 - https://pm-research.com/content/4/4/10.short 4100 - https://pm-research.com/content/4/4/10.full AB - Actively managed ETFs are a relatively recent introduction to the investing landscape, and understanding their performance against passive funds is becoming increasingly important. Consistent with preliminary studies, I find that active funds are more volatile than their passive counterparts and do not provide an absolute return advantage. Thus, active ETFs are generally not good substitutes for existing passively managed funds. However, in contrast to prior studies, I find that performance metrics based on relative risk (e.g., Information and Treynor ratios) suggest that active funds may be good additions to existing portfolios for their diversification benefits. I also find that these relative benefits are primarily concentrated in the funds with the highest average daily trading volume.TOPICS: Exchange-traded funds and applications, portfolio construction, volatility measures