Four Affordable and Tax-Efficient Active ETFs to Watch

Four active ETFs with less than 200 million in assets are highlighted: Jensen Quality Growth (JGRW), PGIM Jennison Focused Growth (PJFG), JPMorgan International Growth (JIG), and Neuberger Berman Small Mid (NBSM). These ETFs offer lower costs and tax efficiency compared to their mutual fund counterparts. Jensen Quality Growth invests in wide-moat stocks, PGIM Jennison Focused Growth focuses on fast-growing companies, JPMorgan International Growth emphasizes steady growers in foreign markets, and Neuberger Berman Small Mid invests in high-quality small and mid-cap companies.

In the rapidly evolving landscape of exchange-traded funds (ETFs), a select group of active ETFs is gaining attention for their low asset bases and potential for growth. These funds, each with less than $200 million in assets, offer investors a cost-effective and tax-efficient alternative to their mutual fund counterparts. Here are four active ETFs that stand out for their unique investment strategies and potential:

1. Jensen Quality Growth (JGRW)
Jensen Quality Growth ETF invests in companies with wide economic moats, providing a defensive strategy that performs well in bear markets. With only $68 million in assets, this ETF focuses on quality companies that are likely to endure. The fund's consistency in both strategy and performance makes it an attractive option for investors seeking stability and long-term growth. Notably, the fund's mutual fund counterpart is also held by the lead author, Russel Kinnel [1].

2. PGIM Jennison Focused Growth (PJFG)
PGIM Jennison Focused Growth ETF is a concentrated portfolio of 30 fast-growing companies, managed by Natasha Kuhlkin and supported by a team of analysts from Jennison. With $136 million in assets, this ETF offers investors exposure to a more volatile, yet potentially higher-returning segment of the market. It is a more focused version of Harbor Capital Appreciation, which Kinnel holds in his 401(k) [1].

3. JPMorgan International Growth (JIG)
JPMorgan International Growth ETF is a Silver-rated fund that emphasizes steady growers in foreign markets. Managed by Shane Duffy, this ETF focuses on a diversified growth portfolio, with Taiwan Semiconductor, Safran, and Tencent as key holdings. With $139 million in assets, it provides investors with exposure to international growth opportunities at a relatively low cost [1].

4. Neuberger Berman Small Mid (NBSM)
Neuberger Berman Small Mid ETF is a Silver-rated fund that invests in high-quality small and mid-cap companies with low debt levels and high returns on equity. With $170 million in assets, this ETF straddles the line between small and mid-cap stocks, offering investors a blend of growth and value. It is less focused on technology and more on cyclical stocks, providing a unique blend of exposure [1].

These active ETFs offer investors a range of strategies and potential benefits, including lower costs and tax efficiency compared to mutual funds. As investors continue to seek out cost-effective and tax-efficient investment options, these ETFs could become increasingly popular.

References:
[1] https://www.morningstar.com/funds/4-promising-active-etfs-2
[2] https://turbotax.intuit.com/tax-tips/investments-and-taxes/tax-efficiency-etf-vs-mutual-fund/L1sYF0Ec3
[3] https://finance.yahoo.com/video/index-investments-closer-look-etfs-100012288.html
[4] https://finance.yahoo.com/news/buy-5-wide-moat-stocks-111500945.html