The rise of ETFs has led to the democratization of many asset classes which were once reserved for the ultra-rich. While investors have quickly adapted to ETFs offering exposure to commodities and quantitative strategies, another alternative asset has also seen a recent surge in popularity. Traditionally, hedge funds have been known for their ability to deliver strong returns with low volatility and low correlations to other asset classes. These returns often come in return for big fees; hedge funds generally charge 2% of assets per year plus 20% of profits, enabling fund managers to live handsomely off of profitable investments. Furthermore, some hedge funds require that their investors earn a minimum amount of money annually and have a net worth of more than $1 million, thereby limiting the universe of available investors. [click to continue…]
While most mutual fund firms shied away from ETFs initially, many have now seen the light, and are actively planning to finally enter into the ETF space. While the forays of Schwab, T. Rowe Price, and Goldman Sachs have received a great deal of media coverage, the ETF adventures of institutions best known for their [...]
With the tremendous rise of ETF investing has come the “democratization” of many asset classes previously out-of-reach to all but the biggest and richest individuals and institutions. One of the primary areas of growth in the ETF industry has been commodity products, which have continued to multiply and attract billions of dollars in assets. According [...]
Fixed income investments are a crucial component of any well diversified portfolio. Depending on investor age and time until retirement, most financial professionals recommend that at least half of your portfolio to be in fixed income securities, mostly low risk government bonds and high quality corporate securities. Yet, with yields hovering around zero and choppy [...]
