Active management funds are funds that invest based on information advantages and independent judgment, and invest based on individual stock selection. Fund managers have full discretionary decision-making power and disposal power when managing funds. Such funds mainly rely on their own professional experience and investment style to strive for greater return on investment.

For example, if the fund manager is optimistic about the new energy industry sector, then let's take a look at the proportion of shares held by the fund managed by this fund manager. Most positions may be related to new energy, but some positions may not have much to do with the new energy industry, because for actively managed funds, it is not required to follow the performance comparison benchmark of 100%.

However, ETF funds are passively managed funds. Generally, specific index stocks are selected as investment targets, and they do not actively seek to surpass market performance, but try to replicate the performance of the index. The portfolio is equal to the weight ratio of the whole market or part of the price index, and the income fluctuates with the current price index.

Generally speaking, ETF funds with passive investment in China are basically 100% to copy the index to be tracked.

Therefore, the difference between the two is obvious: active funds are selected stocks to create excess returns, exceeding the performance benchmark, while ETF's goal is to strive for a perfect replication index.

Their investment concepts are also quite different. Active management funds are fund managers who obtain excess returns through some stock selection methods, and the investment methods may be more radical. ETF funds, on the other hand, are based on the concept of passive investment and use tracking index to achieve investment goals, so the risk will be smaller than that of active management funds.