In an environment in which interest rates have been steadily rising — the 10-year US Treasury yield has moved up almost 75 basis points since its recent low in September 2017 — one question that investors face is the potential effect of this phenomenon on equity sectors. Which sectors might be winners or losers in a rising rate environment?

Many investors think of active and passive management as polar opposites, with nothing in common except the markets in which they operate. While this may be a popular notion, we believe it was never technically true. The question is not whether ETFs and other passive strategies are, in fact, managed investments, but rather how — and how much — they are managed.