Richard Kang1

Market Concern: Hedge Funds, Bonds and ETFs

ETFW: Could be a market there but I really don't know. I still say the vast majority are happy with laddered portfolio of bonds. Bond mutual funds (index or not) probably rank just as high. Bonds are more conservative by nature (or at least perceived to be so), thus I just don't know if it's worthwhile for providers to spend much of their resources in this area. And iShares seems to have the area covered so with Vanguard coming in with lower costs, the area may already be tight for new entrants. Anyone contemplating entering better have something pretty innovative so your idea of leverage could be the right approach. Just not sure if significant AUM would follow. My opinion.