02.28.25

BlackRock, Fidelity Challenge Hedge Funds With Trend-Chaser Bets

by: Justina Lee; Lu Wang

BlackRock, Invesco and Fidelity all recently filed to launch managed futures exchange-traded funds (ETFs). Hedge funds that follow similar strategies control about $340 billion, but their assets have stagnated over the past decade and dipped since 2022. The ETFs that have entered the fray are still tiny in comparison, but the $3.3 billion they now manage is nearly double what it was a year ago. The ETFs come with lower fees than the hedge funds and performed better last year in part thanks to their simpler investment style.

Read the full article on Bloomberg