Actively managed exchange-traded funds that seek to continue to give similar benefits as a traditional ETF are in the works, according to Dow Jones. Managed ETFs LLC, run by ETF guru Gary Gastineau, and ManagedShares Trust filed with the SEC to issue and index a broad range of actively managed ETFs. While traditional ETFs track performance against a given benchmark, managed ETFs adjust the portfolio to generate returns beyond that of the benchmark. But some critics wonder how these new ETFs will actually function and whether their transparency will cause problems.

One major difference between an actively managed and a conventional ETF is the transparency of the fund's holdings. Traditional ETFs are extremely transparent, which is one of the aspects that make them so attractive to investors.

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