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The Cheapest Active ETFs of 2025
Active management has become increasingly affordable thanks to ETFs.
The new breed of actively managed ETFs is a far cry from the traditional mutual funds of the past.
Beyond their lower frequency and size of capital gains distributions—thanks to the in-kind creation/redemption mechanism—and their wider array of investment strategies, these ETFs also come with notably lower fees.
In fact, some of today’s most affordable active ETFs actually come in cheaper than their passive counterparts.
Using the ETF Central screener, we’re taking a look at four of the most inexpensive actively managed ETFs trading on the NYSE today.
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BNY Mellon Ultra Short Income ETF BKUI-0.04%
BKUI is another option in the ultra-short-term bond ETF space, offering a cash-like alternative with higher liquidity than traditional money market mutual funds. It competes against similar offerings from iShares, Vanguard, Invesco, and Schwab.
The fund holds a diversified mix of short-term fixed-income securities, aiming to provide stable returns with minimal interest rate risk. Currently, it has a weighted average yield to maturity of 4.44% and a low duration, making it suitable for investors looking to park cash with low volatility.
At 0.12%, BKUI is a relatively low-cost active bond ETF, especially when you compare it against money market mutual funds, some of which also sport minimum investment requirements.
Franklin U.S. Treasury Bond ETF FLGV-0.34%
BKUI carries credit risk because it holds corporate bonds, which expose investors to the remote, but always present possibility of issuer defaults.
For those looking to minimize credit risk, FLGV is a strong alternative. It’s actively managed to hold a mix of U.S. Treasury bonds, bills, notes, and Treasury Inflation-Protected Securities (TIPS)—all backed by the full faith and credit of the U.S. government.
Benchmarked against the Bloomberg U.S. Treasury Index, FLGV takes a more concentrated approach, holding just 27 securities compared to 291 in the benchmark. Despite its active management, it remains very affordable, with a 0.09% expense ratio.
Dimensional US Equity ETF DFUS-0.07%
Accessing time-tested factor investing strategies is now cheaper than ever, thanks to Dimensional Fund Advisors’ decision to bring its strategies to the ETF format.
Its flagship core fund, DFUS, provides broad market exposure, benchmarked to the Russell 3000 Index, but with an active, modest systematic tilt toward size, value, and profitability—all well-established factors in academic finance.
It’s also well-capitalized, with $14.6 billion in AUM, and like its index-tracking counterparts, it maintains low turnover (2%), despite its active management approach.
Even more refreshing, it remains inexpensive, with a 0.11% expense ratio—a competitive price for actively managed factor exposure.
WisdomTree U.S. Value Fund WTV-0.41%
A rare ETF to earn a 5-star Morningstar rating, WTV has consistently ranked among the top performers in the mid-cap value category based on risk-adjusted returns.
Its strategy screens stocks based on shareholder yield, taking a multidimensional approach that considers both dividends and share buybacks rather than just one or the other.
As a result, its portfolio looks very different from traditional market-cap-weighted ETFs, with substantial differences in top holdings and sector allocations.
Over the past 10 years, WTV has delivered an annualized return of 11.78%, proving the effectiveness of its value-focused approach. Even with active management, it remains highly cost-effective, charging just 0.12%, which is lower than many value factor ETFs—including some index-based ones.
This article is for informational purposes only and does not in any way constitute investment advice. The author may express their own opinions, which may not represent the opinions of ETF Central or its affiliated partners. It is essential that you seek advice from a registered financial professional prior to making any investment decisions.
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