Deutsche Launches First Hedgefund ETF

Rodney King · Mar 16, 2009

http://www.emii.com/Articles/212611...tsche-Launches-First-HF-ETF.aspx?LS=EMS255160

Deutsche Launches First HF ETF
Deutsche Bank has launched the world's first Exchange Traded Fund based on actual hedge funds, providing liquid, exchange-tradable access to the hedge fund asset class.

rickf · Mar 16, 2009

Damn.

It figures -- now that the major HF collapse is over, they come out with this. How typical....last year just as the commodity bubble was bursting, UBS came out with long-only retail-oriented notes tied commodity indices. Those went nowhere but down, down, down.

Wish this was around 2 years ago, it'd have been a great short.

Corelio · Mar 16, 2009

Quote from Rodney King:

Deutsche Launches First HF ETF
Deutsche Bank has launched the world's first Exchange Traded Fund based on actual hedge funds, providing liquid, exchange-tradable access to the hedge fund asset class.

roflmao...

ASusilovic · Mar 16, 2009

Quote from Rodney King:

http://www.emii.com/Articles/212611...tsche-Launches-First-HF-ETF.aspx?LS=EMS255160

Deutsche Launches First HF ETF
Deutsche Bank has launched the world's first Exchange Traded Fund based on actual hedge funds, providing liquid, exchange-tradable access to the hedge fund asset class.

Mots important question :

whatÂ´s the expected volatility for this stuff ?

asap · Mar 16, 2009

Quote from ASusilovic:

Mots important question :

whatÂ´s the expected volatility for this stuff ?

99.99% or so. the etf might sue Porsche BTW

ZeroSigma · Mar 17, 2009

exchange-tradable access to the hedge fund asset class.

Actually, tracking hedge fund *indices* seems to be the first sensible attempt to produce an actively managed ETF. And its portfolio is UCITS-compliant too, i.e. much safer than American LLC's. No Madoff schemes possible here: independent regulator-approved onshore fund administrators are required, and exchange listing in Ireland gives additional security. No Amaranth-style blow-ups are possible either, because an UCITS-compliant fund has its leverage limited to 2x (but still allowed for speculative purposes). Even the total expense ratio below 1% seems reasonable (just see those second-level fees of a typical Fund of HF's...). OK, I admit it - European red tape wins hands down on this one - exporting alpha via a stock exchange would not be possible for US hedge funds - LLCs are just plain to risky on all counts.

Go on, Interactive, the ticker is XHFI: http://www.dbxtrackers.de/DE/showpage.asp?pageid=143&inrnr=153&pkpnr=465&stinvtyp=

and it is an ETF listed on XETRA, so no one will blame you if you enable it for all of us, not merely German or EU citizens. Looks like the first cross-border marketable hedge fund! Such a pity that market neutral strategies have a mere 4% weight in its portfolio... but what else do you expect from an indexer - 'value weighting' translates here into 'strategy capacity weighting'.

ASusilovic · Mar 17, 2009

Quote from ZeroSigma:

Such a pity that market neutral strategies have a mere 4% weight in its portfolio... but what else do you expect from an indexer - 'value weighting' translates here into 'strategy capacity weighting'.

Why "pity" ?

DTD MTD YTD INDEX
VALUE Feb 09 ROR YTD 2008 2007 2006

HFRX Equity Market Neutral Index -0.4464% -1.27% -2.20% 1019.95 -0.95% -0.95% -1.16% 3.11% 4.76%:

Rex84 · Mar 17, 2009

Quote from ZeroSigma:

Actually, tracking hedge fund *indices* seems to be the first sensible attempt to produce an actively managed ETF.

they already exist

http://www.marketwatch.com/tools/quotes/profile.asp?sid=3487191&symb=PSR

Pekelo · Mar 17, 2009

Quote from rickf:

Wish this was around 2 years ago, it'd have been a great short.

Actually it is not better than shorting an index ETF. Market went down -38% last year, the average HF only -18%....

jimbo320 · Mar 25, 2009

Good luck