While many retail and institutional investors gravitate to high-performance, high-risk hedge funds and private equity, they also continue to pour money into the opposite end of the spectrum: low-cost exchange-traded funds, Reuters reports.

Deborah Fuhr, executive director of investment strategies at Morgan Stanley, called this predilection for both types of investments a "barbell," with high-risk on one end, and low-risk on the other. Luckily, she said, investors are balancing their increasing tolerance for risk with exchange-traded funds.

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