Interesting comments from Abnormal Returns about the continuing development of ETF's and increasing availability of hedge funds:
Availability of exotic beta
We've mentioned ETF's here before as a recommended vehicle over standard mutual funds, but what we've not normally seen discussion on is hedge funds - namely because these tend to be at the more extreme end of investing, and access can be pretty exclusive (you invest, don't ask where the returns come from).
Quote:
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Consumer choice is a hallmark of a capitalist society. Investments are no exception. As more exotic ETFs and publicly traded hedge funds come to market investors are going to have the opportunity to craft ever more complete portfolios. The challenge is to have a commensurate amount of education and commentary available to investors to allow them to rationally sort through the various risks of using more complex products.
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Got to admit, with so much secrecy over a lot of hedge funds, I can see some investors scratching their heads at the risk. But then again, I figure those in ETF's already are a little more clued up on the investment markets anyway.
ETFs and hedge funds
