Active ETFs have driven market narratives over the last year or so, with active strategies picking up significant flows. That has contributed to renewed interest from asset managers and investors alike in adding some active ETF performance.
Of course, with so many active ETF strategies arriving to the ETF landscape lately, the number of choices may overwhelm. Investors may want to look to long-term performance from a fund like the ALPS Active Equity Opportunity ETF (RFFC).
See more: Beyond the REIT Headlines: The Case for an Active REIT ETF
The ETF has returned 11% over the last five-year period. That has more than doubled the performance of its ETF Database Category and FactSet Segment averages. They returned 4.5% and 1.6%, respectively, over five years, per VettaFi data.
Those returns, as well as RFFC's significant outperformance over one year, suggests its nearly 30% return over one year may not be a fluke. That one-year return stands out among active ETFs with multicap, blended views; among those active ETF strategies with three or more years of track record in those equity categories, RFFC’s returns place it in the top 10 over one year, per VettaFi data.
What, then, is the ETF’s outlook this year? RFFC charges 48 basis points for its approach. It actively invests across small-, mid-, and large-cap securities, including both regular stocks and REITs. It looks for dividend-paying stocks and securities that appeal, with high or improving returns on existing, invested capital.
Looking ahead, RFFC’s active remit will empower it to adapt quickly to events as needed. Its in-depth focus on a firm’s fundamentals can help it identify potentially significant opportunities, especially if rates do drop this year. Looking forward, consider RFFC as a key option for active ETF performance.
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Read more on ETFTrends.com.The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
