Certainly amazing are the standard annual +10% returns coming from across the board of Top Holdings ETF packages. Investing like Hedge Fund Managers is a realm which is now available to foreign investors without burning a hole in the wallet in terms of principal investments and even higher operating fees charged by the fund managers. Although a newer ETF format but is continuously defying its critics who have always found their returns too good to be true. Top Guru Holdings ETF or Alpha clones as they are nicknamed on the streets have outperformed most asset classes with the help of its exclusive equity basket that is derived from the 13F Holdings made public by the top most hedging managers from all over the world and in return the ETF issuers charge only a fraction of operating costs in contrast.
Investors seeking to emulate the tactics of the trading world's smartest brains would rather find solace in these GURU ETFs as the 2/20 fees rule does not apply to this asset class and smaller investments are encouraged.
To further enhance the investment transparency, the issuers declare a daily holdings list and a quarterly strategy change follows as soon as the 13 F holdings of the best hedge funds are made public. The good performance is due to the exceptional run that some of the related equities have shown last year but the biggest winner from this ETF stable is a feat to maintain a beta which is consistently lower than one when compared to the National benchmark S & P 500 Index.
In the interim duration between April 2012 and 2013, The AG & G Solutions powered Solactive Top Guru Holdings Index has delivered 36% of returns as compared to the 20% returns delivered by the S & P Index during the same period. A beta lower than one also guarantees investor security in this otherwise high risk high reward trades where equities fluctuate as much as in the range of 30 - 40% per year. Although the regular blue chips such as Apple and IBM are expected choices in these funds but ironically the biggest gainers are the heavy weights form the Emerging markets such as Brazil and China.
Cosan Ltd, the Brazilian Ethanol Giant and Education Management Corp. is among the equities that interest most hedge funds and have delivered as much as 60% in the past twelve months.
Investing like a hedge fund may even fare better in the coming two quarters in the wake of positivity that is now being seen in the developed markets as most holdings come from the Fortune 100 companies such as American Movil, Face book Inc. and the likes which are listed on the capital markets of the developed world.
The markets today are unfathomable as the proven correlations between crude oil, dollar and bullion are no longer consistent, making it more and more difficult for the analysts to forecast upcoming financial trends. Broader market participants are now looking beyond the conventional investment corridors.
A partial exposure to the hedge fund etf even enables hedging within your portfolio against the investments in bond and debt instruments which are generally low yield products but are mandatory to ensure highest security of the money vested.
Apart from the risks that are generally associated with the Equities, an argument which questions the credibility of the 13 F findings is still making rounds as some critics point out that the holdings are made public only after three months, which means that the respective fund managers may have already sold it by then and even a weaker law around it does not mandate the fund authorities to submit their complete holdings.
Top Hedge Fund Holdings ETF delivers as per the performance of the name sake Solactive Index. Invest like hedge fund may even fare better in the coming two quarters in the wake of positivity that is now being seen in the developed markets as most holdings come from the Fortune 100 companies such as American Movil, Face book Inc. and the likes which are listed on the capital markets of the developed world.