ETF Funds are taking over Hedge Funds as published by ‘The Economist’ magazine.

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 …