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 |
