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ETFs attract more attention from hedge funds

The exchange-traded fund started life around 15 years ago. While US hedge funds have embraced the use of ETFs, European funds have been slow off the mark. That could be changing.

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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

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