ETFs attract more attention from hedge funds

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When State Street Global Advisors (SSgA) and the American Stock Exchange together launched the first exchange-traded fund (ETF), the SPDR S&P 500 ETF (SPY) launched in 1993, it was designed to be an institutional trading vehicle. Since then the uptake from the retail sector has grown while the US hedge fund industry has also discovered the uses ETFs can play in portfolios. However, their European counterparts have been slower to use ETFs, although this could be changing.

Over the past few years,

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