Many Active ETFs Are Dressed-Up Index Funds. How to Find the True Stockpickers.
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Dec 04 2024
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Source: Barron's
Growth of Actively Managed ETFs: The actively managed ETF market has seen significant growth, with 82% of the 1,619 available ETFs listed since 2020; however, many are not traditional active funds but rather systematic strategies that closely resemble indexed approaches.
Characteristics of True Active Management: Genuine active management is characterized by a smaller number of holdings and in-depth research by analysts, as exemplified by funds like T. Rowe Price Capital Appreciation Equity ETF and Putnam Focused Large Cap Value ETF, which focus on fewer stocks and employ extensive analyst insights for stock selection.
Analyst Views on EXC
Wall Street analysts forecast EXC stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for EXC is 49.46 USD with a low forecast of 39.00 USD and a high forecast of 57.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
15 Analyst Rating
7 Buy
6 Hold
2 Sell
Moderate Buy
Current: 44.600
Low
39.00
Averages
49.46
High
57.00
Current: 44.600
Low
39.00
Averages
49.46
High
57.00
About EXC
Exelon Corporation is a utility services holding company engaged in the energy transmission and distribution businesses through its subsidiaries, Commonwealth Edison Company (ComEd), PECO Energy Company (PECO), Baltimore Gas and Electric Company (BGE), Potomac Electric Power Company (Pepco), Delmarva Power & Light Company (DPL) and Atlantic City Electric Company (ACE). Its segments include ComEd, PECO, BGE, Pepco, DPL and ACE. ComEd segment is engaged in purchasing and regulating the retail sale of electricity. PECO segment is engaged in purchasing and regulating the retail sale of electricity and natural gas. Through its business services subsidiary, Exelon Business Services Company, LLC (BSC), it provides its subsidiaries with a variety of support services at cost, including legal, human resources, finance, information technology and supply management services. BGE segment is focused on transmission and distribution of electricity and distribution of natural gas to retail customers.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
