Warning: Hedge Fund ETFs Have A Few Surprises
The proliferation of exchange-traded products has essentially democratized the investment landscape, opening up previously hard-to-reach corners of the market to average investors. While passive, index-tracking ETFs still remain most investors’ top picks, funds with unique methodologies have become more and more popular as investors search for uncorrelated returns. Hedge-fund-like strategies, which once were reserved for only the wealthy, are now available to investors through a single equity ticker [see Cheapskate Hedge Fund ETFdb Portfolio]. And while the lineup of funds employing hedge-fund-like strategies is rather small, these products have gotten significant attention from investors looking to get their feet wet in the alternatives pool. A look under the hood of these funds, however, reveals some factors investors should keep a close eye on. Are Hedge Fund ETFs Worth the Risk and Fees? Whether these ETFs use long/short strategies, merger arbitrage or event-driven trading, what investors most often focus on is bottom line returns. This [...] Click here to read the original article on ETFdb.com. Related Posts: ProShares Launches Hedge Fund Replication ETF (HDG) Ultimate Guide To IndexIQ Hedge Multi-Strategy Tracker ETF (QAI) AdvisorShares Launches Long/Short Hedge Fund ETF (QEH) Using ETFs To Access Alternatives How Have The Hedge Fund ETFs Held Up In The Crisis?
The proliferation of exchange-traded products has essentially democratized the investment  landscape, opening up previously hard-to-reach corners of the market to average investors. While passive, index-tracking ETFs still remain most investors’ top picks, funds with unique methodologies have become more and more popular as investors search for uncorrelated returns. Hedge-fund-like strategies, which once were reserved for only the wealthy, are now available to investors through a single equity ticker [see Cheapskate Hedge Fund ETFdb Portfolio].  And while the lineup of funds employing hedge-fund-like strategies is rather small, these products have gotten significant attention from investors looking to get their feet wet in the alternatives pool. A look under the hood of these funds, however, reveals some factors investors should keep a close eye on. Are Hedge Fund ETFs Worth the Risk and Fees? Whether these ETFs use long/short strategies, merger arbitrage or event-driven trading, what investors most often focus on is bottom line returns. This [...]

Click here to read the original article on ETFdb.com.

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