Share This Article
March 25, 2009 10:38am ETF BASIC NEWS


An new ETF is rolling out today to invest in Hedge Funds?  Is this another Bernie Madoff scam?  Sounds a little suspicious that hedge funds are trying to raise capital through ETF’s?  Buyer beware of these ETF’s, and invest at your own risk!

World’s first hedge fund ETF launches as investors seek liquidity
The world’s first exchange traded fund based on actual hedge funds has launched, run by Deutsche Bank’s ETF index tracking platform, db x-trackers, as demand for more sophisticated ETFs grows.

Stephane Farouze, global head of hedge fund derivatives at Deutsche Bank said: “For investors wanting access to hedge fund returns, this ground-breaking ETF offers unprecedented transparency and as well as intra day liquidity compared to at best monthly or even quarterly liquidity for a traditional hedge fund investment.”

Thorsten Michalik, head of db x-trackers said: “For the first time, investors will have liquid, UCITS III access to the hedge fund industry. Market participants will also be able to base their financial products on the ETF, as Deutsche Bank will be the market maker and will offer two way prices on and off the stock exchange.”

The bank said all hedge funds on the managed account platform are Jersey unit trusts listed on the Irish Stock Exchange, managed and administered by legally separate Deutsche Bank affiliates.

Third party hedge fund managers are sub-contracted to each platform fund as a trading adviser and their responsibility is to manage the portfolio for a given fund.

db x-trackers is the third largest ETF provider in Europe with over €19bn of assets under management since 2007.

At present there is $800bn in assets under management in ETFs worldwide and this is expected to grow as inflows from Europe, Asia and the Middle East offset slower growth in the traditional ETF market in the US.

Source: Tara Loader Wilkinson

9 "Must Own" Growth Stocks For 2019

Read Next

Get Free Updates

Join over 50,000 investors who get the latest news from!

Most Popular

Explore More from

Free Daily Newsletter

Get daily ETF insights from our market experts. Never miss another important market development again! respects your privacy.

Best ETFs

We've rated and ranked nearly 2,000 ETFs and ETNs using our proprietary SMART Grade system.

View Top Rated ETFs

Best Categories

We've ranked dozens of ETF categories based on relative performance.

Best ETF Categories