ETFs and the Statistical Arbitrage Hedge Funds Who Love Them

Traders Magazine in this article says:

One favorite investment vehicle for the stat arbs are the exchange traded funds (ETF), according to the head of one proprietary trading desk. The stat arbs execute more than 50 percent of the volume in the ETF that is based on the S&P 500, the SPDR. “They’re taking these orders and just shredding them,