CPI – ProShares has launched the ProShares Hedge Replication ETF. HDG’s benchmark is based on Merrill Lynch’s hedge fund replication model.
HDG is attempting to provide the risk/return characteristics of a broad universe of hedge funds without many of the challenges of hedge fund investing. Historically, a broad universe of hedge funds, as measured by the HFRI Fund Weighted Composite Index, has had attractive risk-adjusted returns relative to equities. However, there are many deterrents to investing in hedge funds, such as illiquidity, limited transparency and high fees.
