JPMorgan Equity Premium Income ETF
Price
$57.85
YTD
+6.25%
Expense
0.35%
Yield
7.15%
Best Active ETFs for 2026
Discover the best actively managed ETFs for 2026. Compare JEPI, AVUV, COWZ, DIVO and top-performing active strategies that outperform index funds.
Complete Guide to Active ETFs in 2026
Active ETFs are the fastest-growing segment of the ETF industry, with a record 1,100+ active ETFs launched in 2025 alone. These funds combine the benefits of active stock selection with the tax efficiency, transparency, and tradability of the ETF structure. Assets in active ETFs have surpassed $1 trillion, driven by demand for income strategies, factor-based approaches, and traditional stock-picking expertise.
Why Active ETFs Are Booming
The conversion of mutual funds to ETFs has accelerated as asset managers recognize the structural advantages of the ETF wrapper: daily tax-loss harvesting capability, lower expense ratios, real-time pricing, and no minimum investment requirements. Firms like Dimensional Fund Advisors, JPMorgan, and Capital Group have launched major active ETF lineups.
Top Active ETFs by Category
Income: JEPI and JEPQ (JPMorgan's covered call strategies) dominate with combined $60B+ in assets.
Value: AVUV (Avantis US Small Cap Value ETF) applies dimensional factor-based investing to select undervalued small-caps.
Cash Flow: COWZ (Pacer US Cash Cows 100 ETF) selects the 100 Russell 1000 companies with highest free cash flow yield.
Dividend: DIVO (Amplify CWP Enhanced Dividend Income ETF) combines dividend stocks with strategic covered call writing.
Growth: ARKK (ARK Innovation ETF) and ARKG (ARK Genomic Revolution ETF) offer high-conviction thematic growth investing.
🏆 Winner — #1 pick
JPMorgan Nasdaq Equity Premium Income ETF
Price
$60.31
YTD
+15.80%
Expense
0.35%
Yield
9.25%
Global X NASDAQ 100 Covered Call ETF
Price
$18.28
YTD
—
Expense
0.60%
Yield
—
Amplify CWP Enhanced Dividend Income ETF
Price
$48.63
YTD
—
Expense
0.55%
Yield
4.50%
ARK Genomic Revolution ETF
Price
$49.87
YTD
—
Expense
0.75%
Yield
—
ARK Next Generation Internet ETF
Price
$158.50
YTD
—
Expense
0.75%
Yield
—
Frequently asked questions
What are active ETFs?
Active ETFs are funds that combine active stock selection by portfolio managers with the tax efficiency, transparency, and tradability of the ETF structure.
Why are active ETFs growing?
Active ETFs are growing due to tax efficiency, lower expense ratios than mutual funds, daily tradability, and investor demand for income and factor-based strategies.
How many active ETFs existed in 2025?
Over 1,100 active ETFs were launched in 2025, marking record growth in the sector.
What is the total AUM of active ETFs?
Assets in active ETFs surpassed $1 trillion by 2026.
Who are the major active ETF providers?
Major active ETF providers include JPMorgan, Dimensional Fund Advisors, Capital Group, ARK Invest, and Amplify ETFs.
What is the advantage of an active ETF over a mutual fund?
Active ETFs offer daily tradability, lower expense ratios, tax-loss harvesting opportunities, and no minimum investment requirements while retaining active management.
Which active ETFs focus on income?
JEPI and JEPQ are leading income-focused active ETFs using covered call strategies on large-cap and Nasdaq-100 stocks.
What is JEPI?
JEPI (JPMorgan Equity Premium Income ETF) invests in low-volatility U.S. large-cap stocks and generates income through selling options on the S&P 500, offering ~7% yield.
What is JEPQ?
JEPQ (JPMorgan Nasdaq Equity Premium Income ETF) combines Nasdaq-100 stock selection with covered call options, generating high monthly income (~9%).
What is QYLD?
QYLD (Global X NASDAQ 100 Covered Call ETF) sells covered calls on the Nasdaq-100, providing high monthly income (~12%) at the expense of capital appreciation.
Which active ETFs focus on dividends?
DIVO (Amplify CWP Enhanced Dividend Income ETF) combines dividend-paying stocks with selective covered call writing for enhanced income.
Which active ETFs target growth sectors?
ARKG (Genomic Revolution ETF) and ARKW (Next Generation Internet ETF) focus on high-conviction growth themes like genomics, AI, cloud, blockchain, and digital media.
What is the expense ratio for JEPI?
JEPI has an expense ratio of 0.35%.
What is the expense ratio for JEPQ?
JEPQ also has an expense ratio of 0.35%.
What sectors does ARKG cover?
ARKG focuses on genomics, including CRISPR, gene therapy, molecular diagnostics, and bioinformatics.
What sectors does ARKW cover?
ARKW invests in next-generation internet companies including AI, cloud computing, blockchain, and digital media platforms.
Are active ETFs suitable for conservative investors?
Some active ETFs like JEPI and JEPQ provide income with lower volatility, but high-conviction growth ETFs like ARKG and ARKW are more suitable for aggressive investors.
Can active ETFs be held in retirement accounts?
Yes, active ETFs can be held in IRAs, 401(k)s, and other tax-advantaged accounts.
How liquid are active ETFs?
Liquidity varies by fund; popular active ETFs like JEPI, JEPQ, and ARKK have strong trading volumes, while niche growth ETFs may have lower liquidity.
What is the YTD return for JEPI in 2026?
JEPI's YTD return in 2026 is approximately +6.25%.
What is the yield for JEPQ?
JEPQ offers a yield of approximately 9.25%.
What is the purpose of covered call strategies in active ETFs?
Covered call strategies generate additional income for investors by selling call options on owned stocks, providing enhanced yield while limiting upside potential.
Which active ETF selects companies with high free cash flow?
COWZ (Pacer US Cash Cows 100 ETF) selects the 100 Russell 1000 companies with the highest free cash flow yield.
Which active ETF focuses on small-cap value?
AVUV (Avantis US Small Cap Value ETF) uses factor-based investing to select undervalued U.S. small-cap stocks.