Actively Managed ETFs

Description of Actively Managed ETFs

Actively managed ETFs are ETFs which do not track underlying indicators, unlike indicator-tracking ETFs which are linked to specific indicators such as a stock price index with the aim of achieving specific financial results.
Actively managed ETFs offer the potential for investment results that exceed the benchmark by allowing management companies and fund managers to use their expertise to select stocks and asset allocations in accordance with a predetermined management policy.
However, there are a wide variety of actively managed ETFs, including those whose main purpose is to provide returns from a specific sector or market, but which do not track underlying indicators. Therefore, when making an investment in actively managed ETFs, it is necessary to confirm whether the investment objective matches your own investment objectives.

Actively managed ETFs listed on Tokyo Stock Exchange (TSE) do not track underlying indicators. The portfolio information (i.e., information on the quantity, value, unit prices, etc. of securities and derivatives, etc., which are the assets in the ETFs) is distributed prior to the start of the daily trading session by the method designated by the management company.

If the management company has engaged ICE Data Services, Solactive AG, or S&P Global to distribute the portfolio information (in this case, synonymous with "PCF information"), you can access the information through the following link.

Indicative NAV・PCF

The method for obtaining information on the NAV (net assets per unit) and market price of an ETFs is the same as indicator-tracking ETFs.

Stock Price Index, Base Value, and Market Price
  • ・The links above do not provide information on stock price indices, etc. for actively managed ETFs.

Points to Note when Investing in Actively Managed ETFs

Actively managed ETFs have different characteristics in terms of price movements and expected returns than indicator-tracking ETFs.
As actively managed ETFs do not track underlying indicators, management companies can response flexibly to market conditions and other factors. However, there is also a possibility that management striving for high returns may result in price movements that cannot be explained by overall market conditions or investment performances that underperform the benchmark.

Actively managed ETFs listed on TSE are currently required to disclose portfolio information daily, but it should be noted that the information is as of the previous day's NAV calculation.
Since the assets in an actively managed ETF may be constantly changed, the estimated net assets per unit (iNAV) calculated and distributed during trading hours based on the portfolio information will not always reflect the price of the underlying ETF assets.