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Today's Bonus News Active ETFs Surge Past Passive, and These Are in the LeadReported by Nathan Reiff. Published: 3/23/2026. 
Key Points - Actively managed ETFs have seen significant acceleration of inflows in the last year, potentially signaling a shift in how investors approach this space.
- Two active funds that may be worth a closer look include CGDV and TCAF, with a focus on dividend value and a GARP approach, respectively.
- Other passive funds may reflect some aspects of active ETFs, such as IVES, which is based on an index but tied to the views of technology analyst Dan Ives.
- Special Report: Elon Musk already made me a "wealthy man"
Exchange-traded funds (ETFs) are often associated with simplifying investing for nonprofessionals and keeping costs low through passive, index-tracking strategies. Surprisingly, actively managed ETFs—funds whose managers select holdings rather than track an index and that typically charge higher fees—have been growing faster than passive ETFs. Goldman Sachs reports that inflows into active ETFs were about four times stronger than those for passive ETFs last year. Active ETFs can potentially capture alpha and employ more sophisticated strategies, which appeals to investors willing to pay for manager expertise. Amid the flood of new products, two actively managed ETFs (and one passive fund that resembles an active strategy) stand out. CGDV Aims for Dividends and Price Appreciation Through an Active Approach The Capital Group Dividend Value ETF (NYSEARCA: CGDV) seeks dividend income that exceeds the average yield of U.S. equities, focusing on large, established domestic companies and select large multinationals. Managers diversify across many sectors, with information technology, industrials and healthcare comprising meaningful weights. By investing at least 90% of its equity assets in stocks with issuer ratings of investment grade or higher, CGDV aims to be a relatively stable income source during market turbulence. Its active management provides flexibility to adjust holdings as conditions change, which may appeal to investors looking for a defensive yet responsive income strategy. CGDV holds just over 50 dividend-oriented stocks, including names such as Applied Materials Inc. (NASDAQ: AMAT) and Microsoft Corp. (NASDAQ: MSFT). With an expense ratio of 0.33%, CGDV is pricier than some passive dividend ETFs. Still, its one-year return of nearly 21% and a dividend yield of 1.31% may make the cost worthwhile for some investors. TCAF's Core Equity Approach Combines Big Names With Lesser-Knowns The T. Rowe Price Capital Appreciation Equity ETF (NYSEARCA: TCAF) uses a core equity, growth-at-a-reasonable-price (GARP) approach to target stocks that offer upside potential with relatively controlled risk. Managers build the portfolio bottom-up without strict market-cap or other screening constraints, selecting individual companies based on fundamentals. The fund holds roughly 100 companies chosen for fundamental strength, performance history and growth potential. TCAF can serve as a core holding to provide diversified exposure to major U.S. names for an expense ratio of 0.31%, while also including lesser-known firms such as pharmaceutical distributor Cencora Inc. (NYSE: COR). Over the past year the portfolio returned just over 10%, slightly below the broader market. TCAF has also attracted significant inflows recently, including nearly $1.9 billion from institutional investors, which could reflect growing confidence and make it worth a closer look. A Non-Active Fund Mimicking an Active Approach The push toward active strategies has influenced some passive funds to adopt more curated indexes. The Dan Ives Wedbush AI Revolution ETF (NYSEARCA: IVES) is passively managed but tracks an index based on selections and convictions from Dan Ives, a technology analyst at Wedbush Securities, focusing on AI-related technology companies. With an expense ratio of 0.75%—higher than most passive funds—investors gain exposure to an index shaped by Ives' views. About 30 holdings include many familiar tech names, but IVES' unique weighting and multi-cap approach can differentiate the portfolio from other AI ETFs. This fund may appeal to investors who follow Dan Ives' analysis and share his optimism about the AI revolution. Launched in June 2025, IVES has a limited performance history but has already attracted nearly $1 billion in assets and trades actively, with a one-month average volume exceeding 500,000 shares. |
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