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New ETFs evolving, but investors slow to warm to them

New York

WITH the growing popularity of exchange-traded funds, the industry is churning out new products targeted at investors' needs, fears and greed.

Many of these innovations are simply being ignored, and although it is still too early to tell for sure, actively traded ETFs have fallen into that category.

Actively traded ETFs have yet to burn up the track with mainstream investors, who mostly cling to passive funds that mirror indexes that are benchmarks for stocks, bonds and other investments. Unlike their passive cousins, active ETFs feature a hands-on manager who can take the reins of a portfolio and make daily decisions on how to best invest, much as in a traditional mutual fund.

As a relatively...

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