An active ETF has a management team (or a model) that decides which investments go into the portfolio and how much weight each one gets. The goal is usually to outperform a benchmark, rather than simply following an index.
Think of it like this:
Tracks an index as closely as possible (e.g., MSCI World).
Same ETF structure, but with active decisions along the way.
"}},{"componentType":"sectionTitle","title":"Active vs passive: what’s the difference in practice?"},{"componentType":"paragraph","richBody":{"value":"Passive ETFs try to mirror an index as closely as possible. Because they require fewer ‘human’ decisions, they’re often simple and cost‑efficient.
Active ETFs try to add value through selection, timing, or risk management.
"}},{"componentType":"sectionTitle","title":"Why are active ETFs potentially interesting right now?"},{"componentType":"paragraph","richBody":{"value":"Because some investors want more than ‘just following the market’.
Three elements that distinguish active ETFs
Although active ETFs may offer certain advantages, they also involve specific risks. Because the fund management actively responds to market expectations, there is a higher risk that the manager will fail to outperform the market and that performance will lag behind that of a comparable passive ETF. In addition, costs are generally higher, which may affect long-term returns. The portfolio may also be adjusted more frequently, leading to additional transaction costs and potentially higher volatility. As with any investment, market risk and the risk of capital loss remain.
"}},{"componentType":"sectionTitle","title":"Pros and cons at a glance"},{"componentType":"paragraph","richBody":{"value":"Pros
An active ETF may outperform if the strategy works, but it’s never guaranteed.
A manager can respond to market moves, valuations, or risks instead of blindly following index rules.
You can generally buy/sell during market hours.
Cons
Active management costs money. If the strategy doesn’t add value, it can weigh on long‑term returns.
Active can do better… or worse. Results depend on the team/model and the approach.
With passive it’s simple (index + cost). With active you also consider objective, approach, track record, and risks.
"}},{"componentType":"sectionTitle","title":"Who might active ETFs be suitable for?"},{"componentType":"paragraph","richBody":{"value":"Active ETFs may appeal to investors who:
Interested in active ETFs? Feel free to browse the range in ING Self Invest. You can find all ETFs via the search function—search for “Active” or use the ISIN from the ETF list to quickly locate the correct product.
Ready to explore? Go to your ING Self Invest and view the full ETF overview.
"}},{"componentType":"sectionTitle","title":"FAQ"},{"componentType":"accordion","accordionList":[{"title":"What are the main risks?","richBody":{"value":"For all the costs and taxes associated with tracker investments, we refer you to:
"},"textLinks":[{"url":"https://assets.ing.com/m/dc241d6bf892e242/TaxationPerProductEN.pdf","text":"Overview taxation per product (PDF)"}]},{"title":"What is the difference between physical and synthetical replication?","richBody":{"value":"
A synthetic ETF is designed to replicate the returns of a selected index, just like any other ETF. But instead of purchasing the underlying assets, it holds a basket of securities that may be unrelated to the index they track. The performance of this basket is then swapped against the performance of the index via a swap contract with a counterparty, in most cases an investment bank.
Both replication methods have their advantages and disadvantages; for example, a physical replication is more transparent than a synthetic one, while a synthetic replicated ETF often has lower management costs than a physical tracker.
"}},{"title":"What is the Total Expense Ratio (TER)?","richBody":{"value":"The total expense ratio (TER) is a measure of the total costs associated with managing and operating an investment fund, such as an ETF. These costs consist primarily of management fees and additional expenses, such as trading fees, legal fees, and other operational expenses.
"}},{"title":"What is a distribution policy?","richBody":{"value":"There are two options when it comes to distribution policy:
An accumulating ETF is a type of ETF in which any dividends that are paid out by its underlying holdings within the ETF are reinvested into the fund by the fund manager at no extra expense. As a result, the value of the ETF increases when a dividend is paid out.
In contrast to accumulating ETFs, distributing ETFs pay out dividends to investors. This means that you receive cash flow and can use the money received however you choose.
Keep in mind that different tax rules apply to both types.
"}},{"title":"How can i buy or sell ETF's?","richBody":{"value":"You can easily buy or sell ETF’s via the ING Banking app or Home Bank
"}},{"title":"Are you interested in trackers?","richBody":{"value":"
Home'Bank or the ING Banking app.
Contact us online: www.ing.be/complaints , call us: +32 2 464 60 04 or send us a letter: ING Complaint Management, Cours Saint-Michel/Sint-Michielswarande 60, 1040 Brussels.
Have you already been in touch with ING? You can also contact Ombudsfin, North Gate II, Avenue Roi Albert II 8, 1000 Brussels or send an email to ombudsman@ombudsfin.be
"}}]},{"componentType":"cards"},{"componentType":"paragraph","richBody":{"value":""}}]},"complementaryZone":{"flexComponents":[{"componentType":"sectionTitle","title":"Also Interesting!"},{"componentType":"cards","cards":[{"componentType":"productCard","cardType":"product","cardSize":"small","title":"ING Banking app","intro":"Manage your investments wherever whenever you like","image":{"transformBaseUrl":"https://assets.ing.com/transform/e98f9b5c-eb1e-4806-abd6-6c4d95208910/ing-investing-app-1920","type":"image","width":1920,"original":"https://assets.ing.com/m/6bafc3a889fee308/original/ing-investing-app-1920.jpg","extension":"jpg"},"link":{"url":"/en/individuals/investing/selfinvest-ing-banking"}},{"componentType":"productCard","cardType":"product","cardSize":"small","title":"Investment funds","intro":"Find out about investment funds","image":{"transformBaseUrl":"https://assets.ing.com/transform/77a732bf-fd16-499e-ac8e-993a550cbcd5/investment-funds-introduction-1920","type":"image","width":1920,"original":"https://assets.ing.com/m/fc4a1ff29fd3f3f/original/investment-funds-introduction-1920.jpg","extension":"jpg"},"link":{"url":"/en/individuals/investing/investment-funds"}}]}]}}}