The link to ‘The Economist’ article is HERE.
Link: Benefits of ETFs
Link: ETF Investing Strategies
Link: How ETFs are Changing the World
ETF Funds currently have more assets under management than Hedge Funds.
|Difference||ETF Funds||Hedge Funds|
|Asset Under Management||$2.971 Trillion||$2.969 Trillion|
|Fees Charged||Usually less than 1%||2% annual charge + 15%-20% performance fee|
|Targets||Average retail investors||Wealthy Individuals & Institutions|
|Invests in||Stocks in an Index the Fund is tracking
(Eg; S&P500), exact replicate with small errors
|A wide range of instruments like stocks, bonds, derivatives, futures, etc|
|Investment Objective||Tracks the market, give investors market returns in minimal fees||Aim to provide positive returns irregardless of market movements|
Over the long-term, it is shown that ETF Funds that tracks an Index tend to perform better than Hedge …