The liquidity charge

  On the face of it, hedge funds are not the most obvious users of ETFs. One group is secretive, opaque and expensive; the other transparent, accessible and cheap. Yet ETFs are growing in popularity among hedge funds, which already dominate the $607bn US ETF market. Hedge funds are newer entrants to the $192bn European market, but there are signs their presence is also growing in ETFs on this side of the Atlantic.  “We see more and more hedge funds willing to use ETFs,” said James Ross, Boston-based senior managing director at State Street Global Advisors (SSgA). “They were early adop...