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The Short Answer

What Are Active ETFs?

The popularity of the ARK family of ETFs is raising the profile of active ETFs.


This article was written by Keonhee Kim.

Does an investment that is low cost, actively managed, and delivered triple-digit returns in 2020 sound too good to be true? That is the case for ARK Innovation ETF (ARKK). Thanks in part to that fund’s success, 2020 was a record year for exchange-traded funds--and there’s some buzz around active ETFs. does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.