Investor Education

What is an active ETF?

What is an Active ETF?

An Active ETF is an open ended managed fund whose units trade on a stock exchange, such as the ASX, just like any other listed security such as a share in a publicly listed company. They are often referred to as ‘exchange quoted products’.

The same as a managed fund, an Active ETF has an investment team and a portfolio manager who actively selects the underlying stocks or shares that go into the Active ETF. They undertake deep research into those stocks to determine their position in the portfolio and take into account things like the state of the economy and other factors that could impact the overall performance of the fund.

Being an open ended fund, an Active ETF trades typically very close to its Net Asset Value and has strong liquidity supported by the fund or other authorised market participants  . It also gives investors transparency through regular disclosure provided on the ASX and Magellan’s website with things such as the Net Asset Value per unit, an intraday indicative net asset value per unit which updates every 15 seconds, monthly fund fact sheets and disclosure of the full portfolio on a quarterly basis. Couple this with no paperwork and investors have a solution that makes investing in both local and global companies easy – all that is needed is online share trading account or an account with a stockbroker.

At Magellan, we have three Active ETFs: Firstly, the Magellan Global Equities Fund (MGE), which gives investors access to a portfolio of actively managed global stocks without currency hedging, we then have the same global portfolio available to investors, but with full currency hedging in place and this is the Magellan Global Equities Fund Currency Hedged (MHG) and finally, we have the Magellan Infrastructure Fund (MICH) which gives investors access to a portfolio of listed infrastructure stocks that is currency hedged.

To understand how an Active ETF works, it’s important to understand some terminology that is used in reference to listed and exchange quoted products. Please click on our other videos to learn more and ensure that you read the Product Disclosure Statement applicable to a fund before making a decision to invest.

Important Information: Units in the fund(s) referred to herein are issued by Magellan Asset Management Limited ABN 31 120 593 946, AFS Licence No. 304 301 (‘Magellan’). This material is issued by Magellan and has been prepared for general information purposes only and must not be construed as investment advice or as an investment recommendation. This material does not take into account your investment objectives, financial situation or particular needs. This material does not constitute an offer or inducement to engage in an investment activity nor does it form part of any offer documentation, offer or invitation to purchase, sell or subscribe for interests in any type of investment product or service. You should read and consider any relevant offer documentation applicable to any investment product or service and consider obtaining professional investment advice tailored to your specific circumstances before making any investment decision. A copy of the relevant PDS relating to a Magellan financial product or service may be obtained by calling +61 2 9235 4888 or by visiting www.magellangroup.com.au.

Past performance is not necessarily indicative of future results and no person guarantees the future performance of any fund, the amount or timing of any return from it, that asset allocations will be met, that it will be able to implement its investment strategy or that its investment objectives will be achieved. Statements contained in this material that are not historical facts are based on current expectations, estimates, projections, opinions and beliefs of Magellan. Such statements involve known and unknown risks, uncertainties and other factors, and undue reliance should not be placed thereon. This material may contain ‘forward-looking statements’. Actual events or results or the actual performance of a Magellan financial product or service may differ materially from those reflected or contemplated in such forward-looking statements. This material may include data, research and other information from third party sources. Magellan makes no guarantee that such information is accurate, complete or timely and does not provide any warranties regarding results obtained from its use. No representation or warranty is made with respect to the accuracy or completeness of any of the information contained in this material. Magellan will not be responsible or liable for any losses arising from your use or reliance upon any part of the information contained in this material.

Further information regarding any benchmark referred to herein can be found at www.magellangroup.com.au. Any trademarks, logos, and service marks contained herein may be the registered and unregistered trademarks of their respective owners. This material and the information contained within it may not be reproduced, or disclosed, in whole or in part, without the prior written consent of Magellan.

How to invest

  • Magellan offers two market-leading strategies, global equities and global listed infrastructure. Find out how easy it is to invest in the world’s best companies, as chosen by Magellan’s experts.

  • Global equity products

    You buy from the world’s best companies, so why not invest in them? Magellan offers a range of highly-rated global equity funds, containing some the world’s best companies that we believe are positioned to benefit from long-term investment tailwinds.

    Find out why investing in a diversified global fund makes sense.

    Invest in global equities
  • Global listed Infrastructure products

    Infrastructure: Supporting you every minute of every day. Our range of top-rated global listed infrastructure funds are positioned to generate inflation-protected, stable yet solid returns.

    Discover why including listed infrastructure in a diversified portfolio can enhance returns and reduce portfolio risk.

    Invest in global infrastructure