Uploaded March 2026 | Updated September 2026, 2 weeks ago
Active ETFs are designed with one goal in mind: beating the stock market.
Unlike traditional ETFs that simply track an index like the S&P 500 or FTSE 100, active ETFs aim to generate higher returns for the level of risk taken. They do this through expert research, data analysis, and active decision-making.
In this video, we explain how active ETFs actually try to outperform the stock market. You’ll learn about the different approaches fund managers use, including:
• Systematic strategies that use data and models to select stocks
• Factor investing using characteristics like momentum, quality, and volatility
• Bottom-up research analysing individual companies and sectors
• Portfolio diversification and risk control
We also explain why outperformance is never guaranteed, and why fees matter when evaluating active strategies.
Active ETFs aim to deliver better-than-market returns while still offering the core benefits of ETF investing: liquidity, transparency, and diversification.
If you're curious about how active ETFs work and how managers try to beat the market, this video breaks it down clearly.
00:00 What Are Active ETFs?
00:22 Different approaches
01:11 The process in practice
01:59 The reality of outperformance
👉 Explore JPM ETFs on InvestEngine: bit.ly/4bbT8cy
👉 Learn more about ETF investing on our blog: bit.ly/4baJDdK
📱 Download the IOS app: apple.co/3N7i7pe
📱 Download the Android app: bit.ly/4aRrBy8
Don't miss out on our regular finance education videos – hit the subscribe button to stay informed and empowered on your investment path.
Want to talk about it? Join the InvestEngine Community: bit.ly/4aVebRO
Follow us on social media:
Instagram: bit.ly/4aRrBOE
TikTok: bit.ly/3PjSwtU
LinkedIn: bit.ly/4re7gru
Reddit: bit.ly/4lgINAP
Capital at risk. The value of your portfolio with InvestEngine can go down as well as up, and you may get back less than you invest. ETF costs also apply. This video is for information only and is not financial advice. Tax treatment depends on individual circumstances and may change. Past performance is not a reliable indicator of future results.
Active ETFs are designed with one goal in mind: beating the stock market.
Unlike traditional ETFs that simply track an index like the S&P 500 or FTSE 100, active ETFs aim to generate higher returns for the level of risk taken. They do this through expert research, data analysis, and active decision-making.
In this video, we explain how active ETFs actually try to outperform the stock market. You’ll learn about the different approaches fund managers use, including:
• Systematic strategies that use data and models to select stocks
• Factor investing using characteristics like momentum, quality, and volatility
• Bottom-up research analysing individual companies and sectors
• Portfolio diversification and risk control
We also explain why outperformance is never guaranteed, and why fees matter when evaluating active strategies.
Active ETFs aim to deliver better-than-market returns while still offering the core benefits of ETF investing: liquidity, transparency, and diversification.
If you're curious about how active ETFs work and how managers try to beat the market, this video breaks it down clearly.
00:00 What Are Active ETFs?
00:22 Different approaches
01:11 The process in practice
01:59 The reality of outperformance
👉 Explore JPM ETFs on InvestEngine: bit.ly/4bbT8cy
👉 Learn more about ETF investing on our blog: bit.ly/4baJDdK
📱 Download the IOS app: apple.co/3N7i7pe
📱 Download the Android app: bit.ly/4aRrBy8
Don't miss out on our regular finance education videos – hit the subscribe button to stay informed and empowered on your investment path.
Want to talk about it? Join the InvestEngine Community: bit.ly/4aVebRO
Follow us on social media:
Instagram: bit.ly/4aRrBOE
TikTok: bit.ly/3PjSwtU
LinkedIn: bit.ly/4re7gru
Reddit: bit.ly/4lgINAP
Capital at risk. The value of your portfolio with InvestEngine can go down as well as up, and you may get back less than you invest. ETF costs also apply. This video is for information only and is not financial advice. Tax treatment depends on individual circumstances and may change. Past performance is not a reliable indicator of future results.
