The Vanguard Group is encouraging hedge funds to invest in their exchange traded funds(ETFs). Five of the designated 30 salespeople who will market to institutional investors, which includes hedge funds. Analysts are already criticizing the move, saying Vanguard doesn’t really care what is best for shareholders, they are just aiming for assets. State Street Global, the 2nd largest ETF provider has people who are 100% dedicated to hedge funds, reports David Hoffman of Investment News. Hedge funds have a dangerous reputation and many say serious volume is one goal of hedge funds. However, volume equals liquidity and liquidity is "free advertising" for ETFs, says one supporter.
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