Is passive investing a Trojan horse? Index funds, once the safest bet, now harbour extreme concentration risk, leaving investors vulnerable in volatile markets. Discover why active ETFs are the essential upgrade. Unlearn the "comfort" of index tracking and gain the adaptability to chase alpha. Howie Lim explores the future of ETFs with the experts.

Synopsis: Every Monday, The Business Times breaks down useful financial tips.

Highlights:

00:37 Passive investing's concentration risk

03:52 comparative advantages of active ETF strategies

07:11 Paying for adaptability, not just performance

08:30 Unlearning the false comfort of index tracking

11:50 Pitfalls of active strategies

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Send us your questions, thoughts, story ideas, and feedback to btpodcasts@sph.com.sg.

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Written and hosted by: Howie Lim (howielim@sph.com.sg)

With Charu Chanana, chief investment strategist, Saxo Bank and Darrin Ng, assistant manager, dealing, global markets desk, Phillip Securities

Edited by: Howie Lim & Claressa Monteiro

Produced by: Howie Lim & Chai Pei Chieh

A podcast by BT Podcasts, The Business Times, SPH Media

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Do note: This podcast is meant to provide general information only. SPH Media accepts no liability for loss arising from any reliance on the podcast or use of third party’s products and services. Please consult professional advisors for independent advice.

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S1E263: Beyond the index: how active ETFs offer adaptability in volatile markets

BT Money Hacks

S1E263: Beyond the index: how active ETFs offer adaptability in volatile markets