A new family of funds and ETFs strive to package the benefits of hedge funds for a broader market.

But for some managers, these investments have frequently been too risky or pricey. Until recently, only "qualified investors" and institutions could invest in hedge funds and even for a qualified investor, a hedge fund investment hasn't always been ideal: the minimums are high, usually over $1 million and commonly over $3 million, and the funds often charge a 1.5%-2% annual fee plus 15%-20% of any profits. So, an 8% return in a hedge fund becomes a 4%-5% return to the manager.

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