Hedge funds are inside ETFs with some big risks for investors
It’s not exactly a new trend, but more hedge fund-like strategies continue to be launched as ETFs, promising investors returns uncorrelated to traditional stock and bond market indexes.
For investors, the key is understanding the exact investing style of each (that can vary widely under a general “hedge fund” brand); how its differs from traditional stock and bond investments; how much it charges in fees, and whether there are equally good, and cheaper ways, to seek diversification in the market over the long-term.
Historically, hedge fund strategies were limited to the ultrawealthy and institutional investors who could meet high investment minimums, but that has changed. There is now over $5 billion in assets under management in ETFs…
