Many investors tend to link exchange-traded funds with index management. Interestingly, a significant portion of ETF assets is allocated to passive index strategies, which might make the rise of actively managed ETFs, or active ETFs for short, seem rather unusual.
Nevertheless, active ETFs are increasingly appealing to long-term investors. According to Morningstar’s Drew Carter and Joe Bullard, the number of active ETFs skyrocketed by over 1,200% since 2016, nearly doubling in just the last two years. They also report that assets in active ETFs surged from $52 billion in 2016 to almost $1.5 trillion by 2025, marking a 64% increase in that year alone. Numerous well-respected investment firms like Vanguard, Fidelity, T. Rowe Price, and Capital Group are either launching new active ETFs or transforming existing actively managed mutual funds into active ETFs.
What is an active ETF?
As the name implies, actively managed ETFs operate under the guidance of a manager or a management team, who actively select the securities to buy, instead of merely tracking a specific market segment. Generally, the objective of most active ETF strategies is to achieve better risk-adjusted returns than their benchmarks over time.
While, as a group, actively managed funds struggle to consistently outperform the index, some active managers have achieved success, particularly when assessing their performance against risk. In certain market sectors, like non-U.S. stocks and bonds, active management has distinct long-term benefits.
Best active ETFs to invest in US stocks
The active ETFs listed here are part of the broader U.S. Equity Morningstar category and have garnered a 100% analyst-driven Medalist Rating of Gold, which is the highest rating as of February 2026.
- Brandes US Value ETF BUSA
- Capital Group Conservative Equity ETF CGCV
- Capital Group Dividend Value ETF CGDV
- Dimensional U.S. Small Cap ETF DFAS
- Dimensional US Target Value ETF DFAT
- MFS Active Value ETF MFSV
- Natixis Loomis Sails LSGR
- Oakmark US Large Cap ETF OAKM
- Pollen Focus Growth ETF PCLG
- T. Rowe Price Capital Increase Stock TCAF
- T. Rowe Price Dividend Growth ETF TDVG
This compilation includes the best active ETFs for U.S. stocks, showing some variation. While most focus on large-cap stocks, others target small-cap ones. Investors have different preferences—some narrow in on value stocks, while others lean toward growth opportunities, and there are several dividend ETFs included too.
To truly grasp a fund’s strategy, it’s wise to delve into its analyst reports.
Best international stock ETFs for long-term active management
All of the active ETFs featured here rank within broad international equity categories and hold a 100% analyst-driven Medalist Rating of Gold as of February 2026.
- Capital Group International Core Equity ETF CGIC
- JP Morgan Global Select Equity ETF JGLO
This list comprises some impressive actively managed ETFs focused on international stocks. Although there are only two, they each offer a unique approach. One zeroes in exclusively on non-U.S. stocks, while the other invests in a mix of U.S. and international stocks. Checking the ETF’s analyst report will provide more insights.
Active bond ETFs suitable for investment
The listed actively managed ETFs here fit into broad fixed income categories and have achieved a 100% analyst-driven Medalist Rating of Gold as of February 2026.
- Fidelity Investment Grade Bond ETF FIGB
- Fidelity Total Bond ETF FBND
- Hartford Strategic Income ETF HFSI
- iShares Total Return Active ETF BRTR
- JP Morgan Core Plus Bond ETF JCPB
- JP Morgan Income ETF JPIE
- JP Morgan Limited Duration Bond ETF JPLD
- PGIM Short-Term Multi-Sector Bond ETF PSDM
- Pimco Enhanced Short Maturity Active ETF MINT
- Pimco Enhanced Short Maturity Active ESG ETF EMNT
Many of the top active ETFs here are categorized within intermediate-term fixed income groups and might be great options for securing the fixed income part of an investor’s portfolio, particularly for goals six years or more down the road. If someone is saving for shorter-term objectives—say, within three to five years—short-term bond funds might be more appropriate. For those with a longer time frame, exploring multi-sector or non-traditional bond funds could be beneficial, although they may introduce more volatility into the equation.
Top active ETFs to buy for the long term: Specialized
These actively managed ETFs fall into specialized equity or fixed income categories and have achieved a 100% analyst-driven highest Medalist rating of Gold as of February 2026.
- Capital Group New Geography Equity ETF CGNG
- Dimensional US Real Estate ETF DFAR
- Neuberger Berman Emerging Markets Debt Hard Currency ETF NEMD
- T. Rowe Price Floating Rate ETF TFLR
The top-rated active ETFs in this section are solid choices for investors interested in niche aspects of their portfolios.
Active ETFs: Advantages and Disadvantages
Why might one prefer active ETFs over actively managed mutual funds?
- ETFs are generally more tax-efficient compared to mutual funds. Since ETFs can physically deliver securities when redeemed, while mutual funds cannot, this leads to higher tax efficiency for ETFs.
- ETFs usually have lower costs than mutual funds. Many costs associated with mutual funds—like advice, recordkeeping, and distribution—are either diminished or absent in ETFs.
- ETFs require less initial investment. Unlike most mutual funds that demand a minimum investment commitment, with an ETF, you can buy just one share.
However, a notable drawback of investing in active ETFs is that these managers often cannot manage capacity effectively. In contrast to mutual funds that can refuse new investments if asset influx becomes excessive—potentially hindering their investment strategies—ETFs lack that flexibility. This situation can lead managers who employ intensive strategies or invest in illiquid markets to compromise their methods during periods of substantial capital inflow.
