Active ETFs Gain Momentum Over Passive Funds: Top Performers Revealed

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Goldman Sachs reports that inflows into actively managed exchange-traded funds (ETFs) outperformed passive ETFs, with active inflows being four times stronger last year. This trend highlights a growing interest among investors in complex investment strategies that aim to capture higher returns.

Notable actively managed ETFs include the Capital Group Dividend Value ETF (CGDV), which targets dividend income exceeding the average U.S. stock yield, with a one-year return of nearly 21% and a dividend yield of 1.31%. Its expense ratio is 0.33%. Another option, the T. Rowe Price Capital Appreciation Equity ETF (TCAF), focuses on a core equity portfolio with about 100 companies and has returned over 10% in the past year, supported by nearly $1.9 billion in inflows from institutional investors, at an expense ratio of 0.31%.

Additionally, the Dan IVES Wedbush AI Revolution ETF (IVES), which launched in June 2025, tracks an index of AI-related technology firms, has attracted close to $1 billion in assets under management with an expense ratio of 0.75%. Its unique weighting approach aims to set it apart from traditional ETFs.

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