Just for Funds: Active ETFs and Trading ETF Insights
Nasdaq’s Gabrielle Vennitti interviewed Matt Lewis, Vice President, Global Head of ETF Capital Markets, about the continued growth of ETFs, trends in active strategies, and what investors should consider as ETF trading evolves.
When we discuss active ETFs with investors or advisors, they often perceive them as a distinct category. We spend a lot of time explaining to them that active ETFs are simply the investment vehicle through which we implement our strategies, allowing investors to add them to their portfolios.
I sit on the capital markets team, and we explain to investors and advisors that ETFs are easy to access. However, there are some steps that you may want to take when trading ETFs: reaching out to a block desk, using limit orders, and exercising caution when using market orders.
Listen to the interview about actively managed ETFs and trading tips.
Data source: Morningstar, September 30, 2025
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Glossary
An order placed with a bank or brokerage firm to buy or sell a fixed amount of an investment at a specified or better price. Investors can limit the amount of time the order is valid before being cancelled. But if the investor's specified price cannot be met during the set timeframe, the trade will not be executed. As such, there is no guarantee that a limit order will result in an executed trade.
Liquidity describes the degree to which an asset or security can be quickly bought or sold in the market without affecting the asset's price.
Volume is the number of shares or contracts traded in a security or an entire market during a given period of time. For every buyer, there is a seller, and each transaction contributes to the count of total volume. That is, when buyers and sellers agree to make a transaction at a certain price, it is considered one transaction. If only five transactions occur in a day, the volume for the day is five.
Exchange Traded Funds (ETFs) are bought and sold through exchange trading at market price (not NAV), and are not individually redeemed from the fund. Shares may trade at a premium or discount to their NAV in the secondary market. Brokerage commissions will reduce returns.
The opinions expressed are those of American Century Investments (or the portfolio manager) and are no guarantee of the future performance of any American Century Investments portfolio. This material has been prepared for educational purposes only. It is not intended to provide, and should not be relied upon for, investment, accounting, legal or tax advice.
Exchange Traded Funds (ETFs): Foreside Fund Services, LLC - Distributor, not affiliated with American Century Investment Services, Inc.