How Active ETFs work

BUX Prime Investment Plans are model portfolios, made up of active ETFs by J.P. Morgan Asset Management, Europe’s leading active ETF manager.

What are active ETFs?

ETFs, or exchange-traded funds, are a type of investment fund that is traded on exchanges. Traditional passive ETFs aim to mirror the performance of an index like the MSCI World or the S&P 500 index. 

Active ETFs work differently. Instead of mirroring an index, like the S&P 500, fund managers try to outperform the index by strategically managing the fund’s investments. They may also aim to generate more income from your investments over the long term. While the aim is to deliver stronger results than the market, this won’t always be the case, despite a solid track record.

Active in action

The managers of the ETFs might choose to invest more in the shares of a company their analysts believe are undervalued, and therefore present a potential opportunity for growth. Perhaps they’ve identified that demand for one of its products is growing, and the market isn’t up to speed yet. 

They might choose to avoid bonds issued by a company that’s taking on more and more debt.

And they might change these positions as the outlook for individual companies or the broader economy shifts.

Combining active ETFs in BUX Prime Investment Plans

BUX Prime Investment Plans bring together actively managed ETFs from J.P. Morgan Asset Management in model portfolios. 

Investing involves risks. Prime Investment Plans, created by J.P. Morgen Asset Management, solely offer general initial allocation of financial instruments that are completely modular. BUX offers execution-only services only and does not provide investment advice.