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Has there been any serious push to get HFT accessible to the average retail investor in the same way that Vanguard did with the S&P 500? As for beating indexes
by orojackson 8y ago
Has there been any serious push to get HFT accessible to the average retail investor in the same way that Vanguard did with the S&P 500?
As for beating indexes, it goes back to the age-old question of being able to identify the great automated trading systems.
- 1e-9 8y agoNot that I am aware of. HFT firms generally don't need outside capital, so they have no motivation to deal with the headaches of running a fund. Funds exist for capital-intensive strategies where receiving fees provides a higher risk-adjusted return than the actual strategy.
- orojackson 8y agoI figured HFT firms exist in their own bubble away from most people. So from the perspective of the average joe, they only indirectly exist as a tiny market force that does price discovery. As for the funds you mentioned, are there any that have a minimum investment of less than $1,000?
- 1e-9 8y agoThe impact of HFT firms is significant, although not obvious to the average person. Investing directly in a hedge fund requires a much higher initial investment as well as a high net worth. I would not recommend it. It is very difficult to select a portfolio of hedge funds that can outperform a simple low-cost index fund tracking the S&P 500.