TITLE

Institutions wary of ETFs is portable alpha approach

AUTHOR(S)
O'Connor, Cecily
PUB. DATE
May 2005
SOURCE
Pensions & Investments;5/2/2005, Vol. 33 Issue 9, p29
SOURCE TYPE
Periodical
DOC. TYPE
Article
ABSTRACT
The article examines the use of exchange-traded funds (ETFs) in portable alpha strategies. ETFs are listed and traded like equities, and track indexes of stocks, bonds or other assets. Institutions can use them for beta, or market exposure, and then add alpha through hedge funds, fixed income or long-short strategies. On the upside, the investor benefits from perfect tracking against the index. The majority of the investors implementing portable alpha make direct investments in the alpha and use futures or swaps for their beta exposure. Cost is the biggest sticking point with institutional investors sizing up ETFs in portable alpha strategies.
ACCESSION #
16990216

 

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