Benzinga recently had the chance to talk with Ethan Powell, Chief Product Strategist for Highland Capital Management, about Highland’s three brand new ETFs: The Highland HFR Global ETF HHFR, Highland HFR Event Driven ETF DRVN and Highland HFR Equity Hedge ETF HHDG, which replicate aggregate hedge fund positions.
Why Follow Hedge Funds?
Benzinga asked Powell why investors should consider buying Highland’s new hedge fund-replicating ETFs rather than a broad market ETF such as the SPDR S&P 500 ETF SPY 0.61%, given that hedge funds have consistently underperformed the overall market recently.
Powell said that the appeal of Highland’s new hedge fund ETFs lies in the safety they provide for investors in an uncertain interest rate and equity market environment.
“What we are trying to do is provide some solutions to the investing public for their concerns over interest rate and stock market volatility,” Powell said.
“Investors will want these ETFs in circumstances where you’ve got a lot of uncertainty in the market, and what we’re trying to do is provide some alternatives for investors who want to insulate themselves from market volatility and uncertainty.”
Hedge Fund Trends
When asked about trends Highland has observed in hedge fund buying lately, Powell mentioned…
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