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Kind of Funds at SIX Swiss Exchange


Definition Active ETFs are actively managed exchange traded funds. The portfolio actively monitors and optimizes the composition of the fund. This means he is able to respond immediately to developing market trends. The aim of an active ETF is to outperform the benchmark. Depending on the strategy of the portfolio manager, the active ETF contains a selection of equities or other securities, that are bought or sold on an ongoing basis.
Investment strategy The aim of an investment in an active ETF is to outperform a benchmark. Active ETFs also offer a way of more finely diversifying a portfolio. Because they are traded on an exchange, active ETFs also enjoy the advantages of transparency, security as well as equal treatment and liquidity.
Trading and market making Both active and passive ETFs are traded at SIX Swiss Exchange during the relevant trading hours. Market makers are required to continually quote prices for both categories of ETFs during trading hours and thereby ensure a liquid and regulated market. Market makers quote bid and ask prices to ensure liquidity in ETFs. The Exchange regularly uses the indicative net asset values of an ETF, which are calculated on an ongoing basis, to monitor compliance with the market-making rules. The benefit for investors is that they can always buy and sell fund units at prices that are in line with the market.
Commission and exchange fees Buying and selling active and passive ETFs is subject to bank-specific commission and exchange fees. However, neither category of ETF is subject to the issuing and redemption commissions that usually apply to investment funds.
Management fees The fund management company (the issuer of the ETF) charges a management fee for administrative tasks relating to the management of the ETF. This fee varies depending on the underlying index and the issuer. The fee amount and its calculation method are described in the ETF's prospectus.