ETFs That Echo Hedge Funds Are Set to Double Assets, Report Says

  • Liquid alternatives to hit $114 billion next year: Greenwich
  • Investors favor ETFs for lower costs and their transparency
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A relatively new category of exchange-traded fund is poised to hit it big, according to Greenwich Associates.

Institutional investment in so-called liquid alternative ETFs -- including products that seek to mirror hedge funds -- will more than double to $114 billion during the next 12 months, analysts led by Andrew McCollum wrote in a report Monday. The study was commissioned by IndexIQ, part of New York Life Investment Management, which runs two of the largest ETFs with hedge fund-likeBloomberg Terminal strategies, data compiled by Bloomberg show.