Low costs, potential gains increasingly drawing investors to active ETFs

TORONTO – Exchange-traded funds have long been a solid pick for investors looking to passively track an index like the S&P 500, while mutual funds were a good bet for active management of portfolios.

But active ETFs — ones where portfolio managers are trying to beat an index with their stock picks — have combined some of the best traits of both options to become a fast-growing preference for Canadians.