What is an "active" ETF and what advantages does it bring to ETF and mutual fund managers and more importantly investors? ETFs in the U.S. are structured as funds following guidelines under the Securities and Exchange Commission 1940 Act regulations with some exemptions , and although these ETFs account for only 9.8% of all mutual funds assets, they have been growing at a rate of 28.9% a year over the past 10 years which is faster than other types of mutual funds.

The first active ETF in the U.S. was launched in 2004 while the first index tracking ETF was launched in 1993. The ETF/ETP industry in the U.S. had 1,525 products with assets of $1.94 trillion from 57 providers at the end of October 2013, of which 68 were active ETFs/ETPs with $14.9 billion in assets or less than 1% of the ETF/ETP industry. 

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