Gone are the days of race-to-the-bottom pricing for exchange-traded funds (ETFs). While many investors will still be drawn to the lowest-cost funds to diversify their exposure, many actively managed funds with higher expense ratios have been on the rise in recent months. Investors seem to be seeking out ETFs with a human touch—funds that have managers who can respond in real time to changing market conditions and opportunities, rather than those that are periodically rebalanced to match an underlying index.
With inflows for actively managed funds skyrocketing, the number of new funds available is also on the rise. Below are three active funds, all launched in the last several years but not among the crop of ultra-new, untested ETFs, that may be worth a closer look for investors willing to spend a bit more in fees for more hands-on oversight by fund managers.
A Balanced Dividend and Value Play Beating the S&P
The Capital Group Dividend Value ETF (NYSEARCA: CGDV) seeks to combine value investing principles with steady income in the form of dividend distributions, with a goal of beating the average yield on U.S. stocks overall. While it is predominantly focused on domestic names, CGDV's managers reserve the option to invest up to 10% of the portfolio on larger companies outside of the United States.
Information technology stocks represent the largest portion of the portfolio at nearly one third, while industrials and health care names also make up sizable chunks of the basket. In terms of overall holdings, CGDV has a fairly focused portfolio of around 55 companies, with many of the biggest names in the U.S. space—NVIDIA Corp. (NASDAQ: NVDA), Microsoft Corp. (NASDAQ: MSFT), and other similar firms—taking prominent positions.
With a dividend yield of 1.1%, CGDV is not the ultimate dividend fund. But while there are alternative dividend ETFs that may pay a more compelling distribution, CGDV's potential for price appreciation helps to balance out its benefits for investors. Indeed, the fund has climbed by about 11% year-to-date (YTD), beating the S&P 500 just slightly over that period.
As far as actively managed funds go, CGDV's expense ratio is not particularly high at 0.33%. Additionally, its strong asset base of about $35 billion and robust trading volumes will appeal to investors concerned about liquidity.
An AI Infrastructure Fund That Has Doubled This Year
Many actively managed funds take on hyper-specific themes, and the VistaShares Artificial Intelligence Supercycle ETF (NYSEARCA: AIS) is among this group. One of a growing number of funds aiming to capitalize on trends in the AI industry, AIS targets AI infrastructure growth in particular. In practice, this means that about half of the fund is given over to semiconductor companies, another quarter is divided among technology hardware, storage, peripherals, and electrical equipment, and the remainder of the portfolio includes software, electronic components makers, and more.
Not limited to domestic names, AIS has nearly 60 positions representing some of the largest players in the global AI scene—its top position, at nearly 11% of the portfolio, is South Korean semiconductor giant SK Hynix.
The fund's active management allows it to be nimble in this way, targeting up-and-coming AI infrastructure names and stalwart companies alike, regardless of geography.
The performance backs up the fund's thesis: it has YTD returns of more than 100% for 2026.
While the annual fee of 0.75% is on the higher side, investors expecting this performance to continue as AI infrastructure demand continues to climb may be more than willing to pay.
A Moderately Priced Defense Fund With a Global Focus
Another niche that is particularly popular in the ETF space of late is defense, and the iShares Defense Industrials Active ETF (NASDAQ: IDEF) is among the newest and most prominent entrants to this industry. Launched in May 2025, the fund has built up an asset base approaching $4 billion and maintains a broad mandate to focus on companies that may benefit from global defense and security spending.
Containing predominantly industrial stocks, with some information technology stocks included as well, IDEF's portfolio is made up of about two-thirds U.S. companies.
The remainder of the portfolio includes firms based in South Korea, the U.K., Japan, Germany, and elsewhere around the world, for a truly global, multi-cap approach.
The fund's roughly 120 positions have led to a YTD performance of about 10%, alongside a modest dividend yield of 0.1%. With an expense ratio of 0.55%, IDEF falls in the middle of our list in terms of annual fee.
The article "3 Active ETFs to Ride the Hands-On Management Trend" first appeared on MarketBeat.
