Pretty spot on.

I just want to clarify though. All funds are professionally managed. The difference is "active" management vs "passive" management.

"Active" management is what you are describing with your ETFs where the fund manager implementing a particular investment strategy and will make changes to the assets in the fund to try and maximize the return.

"Passive" management is how index funds are managed. There is no investment strategy being implemented so all the manager needs to do is make sure the assets in the fund match the index it is tracking.

Due to the fact that"passive" funds are much easier to manage, their internal expenses, or management fee, will be much lower than an "active" fund.

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