ETF total assets as of November 2013 (Source: Blackrock); Hedge Fund total assets as of 2013 Q3 end (Source: BarclayHedge)
Of course, that is not to say that the role of hedge funds is fundamentally challenged. Indeed, in aggregate they continue to attract new investor capital. But with the search for alpha becoming ever harder, it’s only surprising that it has taken so long for ETFs to gain the larger share of the pie.
About Timothy Edwards
Tim Edwards is director of Index Investment Strategy for S&P Dow Jones Indices. The group provides research and commentary on the entire S&P Dow Jones Indices product set, including U.S. and global equities, commodities, fixed income, and economic indices.
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