This is an actively managed ETF that invests in global companies expected to benefit from long-term technological change and disruptive innovation. It does not track a specific index. Instead, the management team selects stocks directly, holding a broad range of innovation themes such as semiconductors, artificial intelligence, and cloud computing.

It suits investors who want active exposure to technology innovation themes and are willing to tolerate the volatility of a concentrated portfolio.

It is an ETF managed by Nomura using an active management approach.

Rather than replicating an index, the management team selects stocks by combining secular trend analysis with bottom-up fundamental analysis. It evaluates earnings growth prospects, management quality, industry positioning, and barriers to entry to build a portfolio concentrated in high-conviction names, and it holds a broad mix of global companies and ADRs.

• High-conviction active management that does not track an index
• Focus on global innovative technology themes

Assets under management (AUM) stand at $269.4M, and the total expense ratio is 0.65% per year.

Compared with ARKK, which targets the same innovation theme, it differs in investment philosophy and portfolio composition, and the fee level should also be compared.

It tends to move in line with the broader technology sector. Given its concentrated portfolio, volatility can be relatively high depending on individual stock issues, interest rates, and earnings season. Recent trends show it responding sensitively to investor appetite for innovation themes.

Thematic active ETFs tend to attract inflows when risk appetite is strong and face greater outflow pressure when investors turn risk averse. Fund flows are largely driven by market interest in innovation themes.

Its strengths are active exposure to innovation themes and the management team's stock selection, while its weaknesses are the volatility of concentrated investing and active management fees.

A leading active ETF in the same innovation and disruptive growth theme is ARKK, which lets you compare investment philosophy and portfolio composition. DYNF, an active ETF using factor rotation, and THRO, which pursues theme rotation, are also worth considering as alternatives since they share the active management approach. If you want broad diversification, a core ETF may be more suitable than these concentrated funds.

Here are the points to review before investing in FRWD. Because it is an active thematic ETF, checking the management fee, stock concentration, currency risk from global exposure, and thematic skew in advance will help your investment decision.

The concentrated portfolio and tilt toward technology themes are the main drivers of volatility. When market conditions are unfavorable for innovation themes, short-term losses can exceed those of core ETFs, so position sizing is important.

It can be considered as a satellite holding for investors who want active exposure to technology innovation themes. However, given the volatility of concentrated investing and the fee burden, diversifying alongside core assets is recommended.