I’m Keith DeGreen and this is your Investors Minute.

Just as investors are beginning to understand the simplicity of index-tracking ETFs, and the relative underperformance of most actively-managed mutual funds — some active fund managers have obtained SEC approval for so- called “actively-managed ETFs” – funds in which the manager again pulls out the wiji board and attempts to pick winners and losers within an index.

So far, actively-managed ETFs represent a small part of the $2T ETF universe – less than one percent. But the number is growing. They are somewhat more prevalent in the bond sector.

The PIMCO total return ETF, ticker BOND – a clone of its actively-managed mutual fund – is an example of an actively-managed ETF.

ETFs have gained rapid acceptance because they are transparent and don’t involve discretion. I strongly believe we should keep it that way.

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