Investors Pull Money From Hedge Fund-Type ETFs
- ‘Alternative’ ETFs see biggest quarterly outflow since 2014
- Median returns of 1 percent this year trail benchmarks
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Exchange-traded funds that attempt to replicate hedge fund strategies are losing assets as the tactics have underperformed benchmark equity and bond indexes.
Investors have pulled about $95 million, or 4.5 percent of assets, so far this year from U.S.-listed ETFs classified as "alternative," the biggest quarterly outflows since early 2014, according to data compiled by Bloomberg. The fund strategies include equity hedge, macro and managed futures. The median return of the 29 ETFs is 0.99 percent this year, compared to a 4.7 percent gain in the S&P 500 index and a 1.16 percent rise in the Bloomberg U.S. dollar investment grade corporate bond index.