Active ETFs Score a Goal: Index Funds Feeling the Pressure!

The Tables Are Turning: A Real 'Golazo' for Active ETFs!

Che it seems even the markets are getting tired of the same old tiki taka of index funds. This year we're seeing a real shift a 'golazo' for actively managed ETFs! Imagine for years everyone's been saying 'Just buy the index Messi,' but now suddenly active managers are like 'Hold my mate!' and dribbling past the passive defenders. Even I am surprised to see Net outflows of $1 billion from equity ETFs in all but $3 billion in inflows to active equity ETFs. It's like watching a whole new generation of players step onto the field!

Record Launches: The ETF World is Getting Crowded!

Seriously there are more ETFs launching than I have goals in a season (okay maybe not *quite* that many but close!). A record 288 new funds this year alone with the potential for over 1,000 by the end of the year. It's like everyone's trying to join the Champions League of investing. More than 2,000 active ETFs. Remember when there were just a few simple index trackers? Now it's like a whole new team of players has joined the field.

JPMorgan's Jon Maier: 'Actively Managed ETFs Are Taking Over the Marketplace'.

That's right; even the big guys are getting in on the action! Jon Maier from JPMorgan is saying active ETFs are 'taking over the marketplace.' It is kind of interesting since Index funds continue to hold the larger share of total assets ($231 billion in this year's flows). They're offering these actively managed ETFs like JEPI that are pretty popular. It's like when I joined PSG – a new team a new challenge but the same old Messi magic. 'La Pulga' is here to stay and so are active ETFs apparently! 'I start early and I stay late day after day year after year. It took me 17 years and 114 days to become an overnight success' but here the overnight success is actively managed ETFs!

The Quest for Uniqueness: No More 'Closet Indexers'!

The thing is you can't just pretend to be active. No more 'closet indexers' hiding in the penalty box! Investors want to see real skill a unique strategy. Mike Akins from ETF Action says to look at the R squared – a measure of correlation to the overall market – to see how active a fund really is. It's like watching a game: you can tell who's really trying to make a difference and who's just going through the motions. After decades during which active stock pickers have often been exposed as "closet indexers" in their funds — in effect buying up what the index holds more than distinguishing their portfolios from benchmarks — it is important for investors to identify funds that are taking a unique approach and how that approach is structured.

Don't Panic! 'Don't Do Anything Stupid When the Market Is Crazy'.

Bob Pisani from CNBC is right on the money here. 'Don't do anything stupid when the market is crazy.' It's like a penalty shootout – stay calm focus and don't overreact. We saw the markets bounce back after some serious dips and if you panic sold you missed out on the comeback. It's all about 'Time in the market not timing the market.' Even the great John Bogle said 'Don't do something … stand there.' Sometimes the best move is to just stay put. Or as I like to say: 'You have to fight to reach your dream. You have to sacrifice and work hard for it.' If you can't work hard then just don't panic.

Young Guns and Risky Bets: The 'YOLO' Investors!

Ah the younger generation! They're diving headfirst into the market with some taking on crazy risks with leveraged and inverse ETFs. It's exciting like watching a young player try a daring move but you also worry they might get tackled hard. These 'Robinhood' traders are willing to do some crazy stuff and while it's bringing fresh energy to the market it's important to remember to play smart not just 'YOLO.' As Akins says 'On the leverage ETF side there are just more and more people embracing the stock market and more 'Robinhood' traders are willing to do some crazy stuff.' In the end active ETFs are here to stay and it's going to be an interesting game to watch. Whether you're a seasoned pro or a fresh faced rookie remember to play with passion but also with a bit of wisdom. ¡Vamos!