In a market where passive investing often dominates, a handful of actively managed ETFs have outperformed their respective benchmarks this year. The following 15 exchange-traded funds across sectors across the globe have posted returns of more than 15 percentage points above their benchmarks year-to-date, despite uncertainty hovering over global financial markets. This means their returns are much higher than their passively managed counterparts. CNBC Pro screened more than 1,000 ETFs listed worldwide for which benchmark data is available through FactSet. Benchmarks are defined by FactSet as “an unbiased, broad market index that best represents an ETF’s class, giving investors a measuring stick against which to compare a specific ETF.” South Korean asset manager Timefolio’s Carbon Neutral Active ETF delivered the largest alpha (the difference between the benchmark and the fund’s total return). The fund has gained 81 percent this year and has beaten the broader MSCI Korea IMI index by 59 percentage points, according to FactSet data. The ETF invests in companies engaged in reducing carbon emissions in the country’s economy. The fund’s focus on high-growth stocks and profitable secondary battery makers helped it achieve significant returns. The Meet Kevin Pricing Power ETF was the third best-performing fund on CNBC Pro’s screen. The fund is up 63% in total return this year and has outperformed the benchmark MSCI USA IMI index by more than 44 percentage points over the same period. Lead fund manager Kevin Piffrath, also known for his YouTube videos, only invests in US-listed companies that have “pricing power relative to their peers”. PP YTD mountains
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Source by [CNBC News]
