If the emerging absolute-return exchange-traded funds succeed in delivering outsized returns at low cost, the one-two punch to the traditional mutual fund industry could gain steam, The Wall Street Journal reports.

One U.K. hedge fund manager, Marshall Wace, is planning to offer an absolute-return ETF on the London and Frankfurt exchanges and is aiming to raise $500 million, and last year, Deutsche Bank debuted a hedge fund-of-funds ETF that has more than $1 billion of assets under management.

Subscribe Now

Access to premium content including in-depth coverage of mutual funds, hedge funds, 401(K)s, 529 plans, and more.

3-Week Free Trial

Insight and analysis into the management, marketing, operations and technology of the asset management industry.