A Push Is On for Actively Managed ETFs

Editor's note: This is the third of five stories looking at the past year and at the year ahead in mutual funds and exchange-traded funds. The first looked at real estate funds that crashed and burned in 2007; the second looked at a closed-end venture capital fund that turned its performance around.

There are those who view active management as the holy grail for exchange-traded funds. To others, it's pure blasphemy.

ETFs are portfolios of securities that trade throughout the day on an exchange, like stocks. They are known for their low costs, tax efficiency and transparency.

To date, all of the products available in the U.S. passively track indices, much like indexed mutual funds. ...