An actively managed ETF (Exchange-Traded Fund) is a type of ETF that is managed by a portfolio manager who uses their expertise and judgment to select the investments within the fund, as opposed to passively tracking an index. Unlike passive ETFs that hold a fixed basket of securities, the holdings of an actively managed ETF can change frequently as the portfolio manager adjusts the investments to take advantage of market opportunities and meet the fund’s investment objectives. Actively managed ETFs often aim to outperform their benchmark index, but they may also come with higher fees compared to passive ETFs.