How are ETFs managed?

If ETFs are baskets of stocks, who decides what stocks go in the basket?

Investment firms add and remove stocks passively or actively!

Passive ETFs mimic the performance of something else 🪞

SPY and VOO track the S&P 500, or top 500 US companies!

BTF tracks Bitcoin! When Bitcoin goes up 5%, $BTF is designed to do the same!

Passively-managed funds tend to charge lower fees to investors than funds that are actively managed.

Actively managed ETFs have portfolio manager(s)👩‍💼👨‍💼 that decide which securities to include in the portfolio.

Portfolio manager(s) attempt to beat the market 🏆with various investing strategies and buying/selling securities.

Active traders can take advantage of short-term movements.

If the S&P 500 races upward 📈when the markets open, actively managed ETFs can lock in the profits 🔒💰immediately.

Actively-managed funds aim to deliver above-average returns 🤑 and are generally more expensive💲

Investors should learn 🤓 how the fund is managed, whether it’s actively or passively managed when choosing an ETF.