Passive ETFs follow a more traditional investment method, tracking the performances of an index; while active and thematic ETFs tend to be exposed to novel investment themes, emerging economic and social trends, and alpha-generating active strategies. This new generation of thematic and active ETFs are shaking up the ETF industry and changing the game for investors. Furthermore, these types of products and their strategies are much more intuitive for the average person. Indeed, it is much easier to lose the thread when people talk about yield curves, asset allocation, or sector correlations, whereas talking about technology, social issues, hobbies, and interests is within everyone’s reach.
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