RT Journal Article SR Electronic T1 Exchange-Traded Hedge Funds? JF ETFs and Indexing FD Institutional Investor Journals SP 125 OP 131 VO 2001 IS 1 A1 Ranga Nathan YR 2001 UL http://guides.pm-research.com/content/2001/1/125.abstract AB All exchange-traded funds in the U.S. are passive, index-based instruments. There has recently been some interest on the part of sponsors in creating ETFs whose portfolios would be managed actively. There are some regulatory and other hurdles to overcome before these instruments become available. Alternative investments, specifically hedge funds, have been in existence for over twenty years. As of now, for various regulatory and other reasons, hedge funds are available only to institutional investors and qualified individual investors meeting certain income and net worth requirements. This article compares these two product classes under the headings of liquidity, transparency, tax treatment, fees and expenses, regulatory supervision, portfolio, structure, type of management, and customer base. The article then examines whether, and under what combination of features, these two product classes might converge into a third product class.