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Why the Biggest Asset Managers are Chasing Active ETFs

Why the Biggest Asset Managers are Chasing Active ETFs

Major financial players including JPMorgan Chase & Co. (JPM), Legg Mason Inc. and Capital Group Cos. plan to debut an emerging breed of exchange traded funds (ETFs), called active ETFs, that could dramatically reshape the industry. This effort by traditional stock pickers to attract client funds comes as investors flock to cheaper, passively managed products tied to indexes, as outlined by the Wall Street Journal. Unlike traditional transparent ETFs, these active ETFs, with the first set to debut by year-end, do not need to disclose investments each day.