Intelligent ETF Definition
Intelligent ETF refers to exchange traded funds (ETFs) that invest in a broad index or a sector based index. The fund may exclude some of the stocks within the index and the weighting of the stocks can also be modified. Intelligent ETFs usually have a higher expense ratio and a higher turnover ratio than standard ETFs. These types of ETFs represent active investing as these funds do not replicate a base index. Therefore the performance of these funds may remarkably deviate from the benchmark index.