UConn's Endowment Opts for Buffer ETFS

The transcript discusses the Yukon Endowment's shift from hedge funds to buffer ETFs for risk mitigation, highlighting the cost benefits and liquidity advantages of ETFs. David Ford, who manages the endowment, believes in maintaining some exposure to long-only hedge funds for alpha but prefers ETFs for hedging due to their lower costs and ease of exit. The discussion also touches on the broader trend of institutional investors moving towards ETFs for various trades, including Bitcoin and commodities, as these options become more available in ETF form. Ford's perspective indicates a growing disillusionment with hedge funds in favor of the flexibility and cost-effectiveness of ETFs.

What is the main reason David Ford cites for Yukon's shift from hedge funds to buffer ETFs?

• Higher returns in hedge funds

• Cost-effectiveness of ETFs

• Lack of liquidity in ETFs

• Increased risk in ETFs

How do buffer ETFs compare to hedge funds in terms of fees?

• Buffer ETFs have no fees

• Buffer ETFs charge significantly less than hedge funds

• Buffer ETFs have similar fees to hedge funds

• Buffer ETFs charge more than hedge funds

What unique feature of buffer ETFs is highlighted as a benefit over hedge funds?

• Complex trading strategies

• Long-term investment

• Higher risk

• Daily liquidity

What trend is observed among institutional investors regarding ETFs?

• Decreasing interest in ETFs

• Increased use of ETFs for various trades

• Preference for hedge funds over ETFs

• Avoidance of ETFs for commodities

What is Yukon's position in the trend of using ETFs for institutional investments?

• Yukon is following other endowments

• Yukon is the first to adopt this strategy

• Yukon is avoiding ETFs

• Yukon is undecided about ETFs