Some ETFs that are Performing Like Hedge Funds, Just Cheaper

August 21, 2018 James Heinsman Hedge Fund News

Hedge funds have been investment vehicles traditionally accessible only to the most net-worth individuals, or institutional investors. As the name implies, they are designed not just to maximize returns, but to minimize the volatility of the market, or hedge against downturns that are inevitable in all economies and marketplaces.

This type of money management comes at a price, typically 1-2 percent for managing the fund, and an additional performance fee, which can be as much 20 percent, or sometimes even more, of profits. Hedge fund ETFs charge between 0.50-0.75 percent of AUM, with no performance fees.

The following video describes how electronically traded funds can use the same strategies as hedge funds, but for a fraction of the fees.

ETFs, Hedge Funds,

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