RT Journal Article
SR Electronic
T1 A New Alternative for Cash Equitization
JF ETFs and Indexing
FD Institutional Investor Journals
SP 79
OP 83
VO 2005
IS 1
A1 Brad Pope
YR 2005
UL http://guides.pm-research.com/content/2005/1/79.abstract
AB Investors frequently encounter the trade-off between cost and tracking. We all know the importance of remaining fully invested during security selection, manager transition, or asset class rebalance. There is not always an available investment vehicle to ensure accurate exposure to our desired allocation. Until recently, most investors were dependent on futures contracts or swaps to accomplish this goal. The breadth of available exchange-traded funds has offered a solution. In this article, the author outlines three scenarios where exchange- traded funds may be considered as an alternative to futures. Each scenario is effectively equitizing cash but for different reasons and with different desired outcomes.