Forget Index Funds: 3 Active ETFs That Have Crushed the S&P 500 Since 2020

While index funds dominate due to simplicity and low fees, certain actively managed ETFs have demonstrated superior performance compared to the S&P 500. The ARK Autonomous Technology & Robotics ETF focuses on emerging technologies like self-driving cars and robotics, achieving 56% returns over the past year despite a 0.75% expense ratio. Its concentrated portfolio of 37 growth stocks is managed by Cathie Wood. The Avantis U.S. Large Cap Value ETF takes a different approach, identifying undervalued large-cap stocks with strong profitability at just 0.15% expense ratio. With over 200 holdings emphasizing value stocks, it demonstrates that active management can succeed through disciplined stock selection and lower costs.

"While most active ETFs fail to keep up with indices, that's not true about every actively managed fund. It turns out there are a few active ETFs that have outperformed the S&P 500 in recent years. Adding these picks to your portfolio can provide additional diversification and possibly boost your returns."

"The ARK Autonomous Technology & Robotics ETF gives investors exposure to the next wave of technological innovation. Self-driving cars are starting to show up in cities, and robotics continues to inch closer to mainstream products and services. The fund has a lofty 0.75% expense ratio, but its 56% return over the past year justifies the cost."

"The Avantis U.S. Large Cap Value ETF team looks for large-cap stocks with low valuations and high profitability ratios. It only has 0.15% expense ratio despite being an actively managed fund. That's a lower expense ratio than most passively managed funds."

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