Hedge funds wise up to the benefits of ETFs

Increasing numbers of hedge funds will create exchange-traded funds (ETFs) to provide investors with low-cost access to their funds while broadening their distribution capabilities, according to global asset manager BlackRock.

BlackRock's latest ETF Landscape industry review says hedge funds, which have typically been difficult for many investors to access due to high minimum subscription levels, are now recognising the appeal of ETFs as accessible vehicles with powerful distribution networks. "