More hedge funds will create ETFs to provide investors with low-cost access to their funds while broadening their distribution capabilities, BlackRock says.
The firm's ETF Landscape says hedge funds, which have typically been difficult for many investors to access due to high minimum subscription levels, are now seeing the appeal of ETFs as accessible vehicles with powerful distribution networks. The report says: "So we expect to see more hedge funds looking to create ETFs with their own funds as the underlying exposure, in an effort to broaden their distribution capabilities." The daily liquidity offered by ETFs also enhances investor access to hedge funds. Credit Suisse ETF product specialist Michelle Dunne says hedge funds suffered ...
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