Hedge funds have been one of the biggest drivers of the exchange traded funds industry’s growth, but that does not mean hedge funds hold losing ETF positions forever.

Ray Dalio’s Bridgewater Associates, one of the world’s largest hedge funds, trimmed its exposure to emerging markets exchange traded funds during the third quarter.

“Bridgewater Associates, once the biggest investor in the world’s two largest emerging-market exchange-traded funds, sold 41 percent of its holdings in the third quarter amid a rout in developing-nation assets,” according to Bloomberg. http://www.bloomberg.com/news/articles/2015-11-12/bridgewater-s-u-s-equity-holdings-declined-31-in-third-quarter

During the third quarter, Bridgewater pared stakes in the Vanguard FTSE Emerging Markets ETF (NYSEArca: VWO) and the iShares MSCI Emerging Markets ETF (NYSEArca: EEM), the two largest emerging markets ETFs by assets.

Bridgewater previously reduced stakes in VWO and EEM during the first quarter as well. The two emerging markets ETFs remain among the hedge fund’s largest equity holdings. Bridgewater also pared its position in the SPDR S&P 500 ETF (NYSEArca: SPY), the world’s largest ETF, last quarter.

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