Source launches hedge fund ETF

The fund tracks the Merrill Lynch Factor Model strategy, designed to generate performance similar to funds-of-funds, but without investing directly in hedge funds. The model, created by Bank of America Merrill Lynch, uses a portfolio of six liquid market indices to replicate hedge fund returns globally. Source says although the performance potential of hedge funds is attractive, there are still investment hindrances including lack of liquidity, lower transparency and single manager risk. The BofAML Hedge Fund Factor Source Euro ETF provides liquid, broad exposure to hedge funds, at...