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%, this ETF 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 managers 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 SPY 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 🤓