Why would Bridgewater hedge fund hold 87% of equity assets in simple ETF's? Theories?

> Why would Bridgewater hold 87% of equity assets in simple ETFs?

The ETF providers are very good at efficiently assembling and managing tracking portfolios. Some ETFs charge low single-digit bips now.
 
777 said:
They have roughly 160 billion plus leverage to work with.
More...
ET180 said:
My guess would be for liquidity reasons. The large ETFs tend to have much better liquidity than individual stocks.
More...
...and BWA also runs a big risk parity strategy that needs leverage and liquidity.
 
comagnum said:
Why would Bridgewater hedge fund hold 87% of equity assets in simple ETF's?

Why not?, where else ale are their going to put their cash, bury it in central park? Many ETF's these days have very low fees, tight spreads, & track the underlying accurately. The products that attract retail due to the leverage is something many pros managing $ do not mess with - especially options with their high commissions, time decay, and all around horrendous risk profile.
More...
%%
Another reason, Comagnum. 2017 is the year that the Random Walker Down Wall St[ Mr Malkiel] wrote on WSJ putting that much money in ETFs will not keep working, because to many people are doing it. [ paraphrase] So my reasoning of Bridgewater doing that, is they are better @ markets than a random walker .LOL:D.

NO disrespect to mr malkiel,random walker; actually share some of his concerns + think the stock pickers may do better in 4th quarter than ETFs. Not a prediction ; wisdom is profitable to direct.
 
You must log in or register to reply here.
Back
Top