New Issuer Enters Hedge Fund ETF Fray

FFCM LLC, a new player in the world of ETF issues, has plans to launch a group of actively managed ETFs that will use hedge fund strategies to generate returns.

In particular, FFCM is planning to launch a 130/30 ETF as well as several additional ETF products. ETFs that use the 130/30 have seen several new issues pop up in recent months.

The strategy shorts 30% of the portfolio and maintains long positions in another 130%. ProShares, First Trust and IndexIQ, among others, have brought similar ETFs to market in the past year.