Iania, LeonardoNoël, ThomasThomasNoël2025-05-142025-05-142025-05-142018https://hdl.handle.net/2078.2/7124This Master’s thesis examines the added value of active exchange-traded funds (ETFs) by conducting a comparative analysis between passively managed ETFs and actively managed mutual funds. The research studies the relative performance of active ETFs listed in the United-States in terms of risk-adjusted returns between 2009 and 2018. This performance is compared to similar passive ETFs and mutual funds. The objective is to examine the added value of active ETFs for investors. Our sample consists of ten groups, each composed of an active ETF, a passive ETF, a mutual fund and a common benchmark. The groups are consistent in terms of investment category and benchmark. Our research then examines the performance of active ETFs compared to their passive ETF and mutual fund counterparts in terms of fees, volatility, tracking error, excess return and risk adjusted return by using several ratios. In addition, we differentiated our results between active ETFs investing in equity and fixed-income categories. The results show an outperformance of active ETFs in the fixed-income category in terms of risk-adjusted returns compared to both passive ETFs and mutual funds. The results are more mixed for the equity category but do not support an underperformance of active ETFs. Overall, our research found that US listed active ETFs add value for the investors in terms of risk-adjusted returns by providing them with cheap active strategies that create positive excess returns.active ETFsactively managed exchange-traded fundsasset managementexchange-traded fundstext::thesis::master thesisthesis:15116