More hedge funds using ETFs as diversification tool

hedgetrimmers — ETFs are becoming a useful tool for hedge funds

Clare Dickinson
07 Mar 2011

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The use of exchange-traded funds (ETFs) by hedge funds is on the increase. Blackrock's August 2010 ETF Landscape report notes that: "Hedge funds are now noticing the growth and appeal of ETFs which are easy to access, but have powerful distribution networks, so we expect to see more hedge funds looking to create ETFs with their own funds as the underlying exposure."

ETF providers have recognised this opportunity and some are offering products designed with hedge funds in mind. Factor Advisors la