ETFs Set To Outstrip Hedge Funds

Jan 7 2014 | 1:56am ET

The hedge fund industry is already much smaller than the mutual fund industry, and may soon by smaller than one small part of the mutual fund industry—if it isn't already.

Total investment in exchange-traded funds is set to surpass that in hedge funds this year. But one measure—BlackRock's—it already has. And ETFs are growing much faster than hedge funds, having seen their assets soar since 2008, while hedge funds have struggled to regain capital lost during the financial crisis.

"If the current trends continue, 2014 will herald a significant milestone for the ETF and hedge fund industries, as the total amount of capital invested in the former threatens to overtake the latter," S&P Dow Jones Indices' Tim Edwards said.

Hedge funds grew by 8% last year, according to Eurekahedge, and manage a total of more than US$2 trillion.


In Depth

Israeli Hedge Fund Harnesses Big Data

Jul 28 2014 | 8:10am ET

Apica Green is a multi-million dollar Israeli hedge fund that is based in Tel Aviv...

Lifestyle

David Yarrow On Growing His Hedge Fund And Shooting The Animals And People Of Africa - As A Photographer

Jul 23 2014 | 6:44am ET

While he’s always been a photographer, recent expeditions to Iceland, Ethiopia...

Guest Contributor

The Truth About Track Record Portability

Jul 24 2014 | 5:55am ET

The number of private funds converting to mutual funds has increased significantly...

 

Sponsored Content

    Northern Trust Helps Hedge Funds Navigate Derivatives Regulations

    Jul 8 2014 | 10:48am ET

    The surge in derivatives regulation is among the most complex challenges facing the financial services industry today. Northern Trust’s Joshua Satten recently spoke with FINalternatives to share insights into the challenges presented by new regulation and explore how the industry is responding. Read more…

Publisher's Note