The S&P 500 has grown more than 17% YTD, but is that rise deceptive? A significant amount of that growth owes to just a few key names. Those include the usual mega-cap tech firms like Apple (AAPL) and Microsoft (MSFT). Concentration risk like this can bee seen in indexes across all market capitalization sizes, including small-cap and mid-cap stocks. In fact, concentration risk poses an even larger liquidity challenge to small-cap and mid-cap index portfolios. In a market also threatened by continued rising rates, stubborn inflation, and a still-looming recession risk, finding the right ETF matters. The right active ETF can help mitigate that concentration risk while moving nimbly across opportunities.
Why go active? An active ETF comes with inherent advantages amid uncertainty. Its managers can lean on serious professional experience and their own track records. Meanwhile, they…
