Constructing Absolute Return Funds with ETFs

Institutional-investor-journals

 

 

 

 

Constructing Absolute Return Funds with ETFs : A dynamic Risk-Budgeting Approach

« This article develops an application of ETFs to the management of an absolute return fund. The use of dynamic core-satellite portfolio management makes it possible to construct absolute return funds using ETFs on stock and bond indices. As a result of the ease with which they are traded, ETFs make an ideal vehicle for putting dynamic risk budgeting into practice. – More …