Why Hedge Funds Are Launching Their Own ETFs
Hedge fund products might not be so exclusive anymore.
Man Group, which oversees roughly $43 billion in assets in the US, entered the ETF race earlier this month with two active bond ETFs, the Man Active High Yield ETF (MHY) and the Man Active Income ETF (MANI), which will invest, respectively, in junk bonds and debt instruments including corporate, government and securitized notes. Several other firms have launched or sought SEC approval for their own strategies in the past year, a sharp departure from typical offerings geared toward sophisticated or institutional investors. Man Group’s move reflects the ongoing popularity of active strategies, and fund managers believe that, despite lower fees, ETFs can bring in new…
