Hedge Funds Prefer ETFs For Shorting: Goldman Sachs

Even hedge funds like ETFs.

But not for the same reasons as you and me. The latest "Hedge Fund Trend Monitor" study from Amanda Sneider, David J. Kostin, Stuart Kaiser, Ben Snider, Rima Reddy and Aaron Woodside of Goldman Sachs Portfolio Research says hedge funds use ETFs primarily for just that – hedging.

Hedge funds using ETFs as hedging tool

“Hedge funds use ETFs more as a hedging tool than as a directional investment vehicle, based on our analysis of 13-F and short interest filings. We estimate that hedge funds hold $138 billion in gross exposure to ETFs compared with $1.7 trillion of gross exposure to single-stocks. ETFs represent 3% of long holdings, down from nearly...