Revisiting Family Office ETFs

Revisiting Family Office ETFs

Family Office ETFs: Sophisticated Strategies Using Exchange Traded Funds

Many wealthy families pay high fees for sophisticated, high-risk/high potential reward investments—such as private equity, private real estate and hedge funds. In recent years fewer and fewer of these investments have outperformed their relevant benchmarks.

Given their high fees, lack of transparency, illiquidity and tax inefficiency, there is growing appetite among wealthy investors for less costly and complex substitutes to alternative investments.

ETFs may not have as much “sex appeal” as hedge funds, for example. However, they can often perform virtually the same role in a diversified portfolio and provide exposure to the same asset classes, without the disadvantages of hedge funds.

This white paper describes the inner workings of ETFs, sophisticated investment strategies that can be implemented with ETFs, and the benefits/considerations of using Family Office ETFs.

ETF Basics

ETFs—exchange traded funds—are open-ended investment companies that package stocks, bonds or other securities. ETF sponsors such as BlackRock (iShares), ProShares, Invesco PowerShares and State Street Global Advisors, the four largest creators of ETFs, design ETFs to mimic the price movements of a particular index as a more fexible and less expensive replacement for index mutual funds….


Family Office ETFs Topics Covered

  • ETF Basics
  • ETF Structural Advantages Over Hedge Funds
  • Sophisticated ETF Strategies
  • Redeeming ETFs
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