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What is a fund of funds?

A fund of funds is a simple and cost-effective way to cover all your bases in a single position to cut down on complexity and confusion in a crowded ETF environment. Of course, under U.S. Securities and Exchange Commission regulations, all ETFs – including fund of funds – must report their holdings publicly.

What is a fund of funds (FOF)?

Here's an explanation for A fund of funds (FOF) is an investment vehicle that pools money from investors and buys a portfolio of other investment funds such as mutual funds, exchange-traded funds or hedge funds.

How do funds of funds work?

Funds of funds are found for all kinds of strategies and include hedge, exchange-traded, mutual, private equity, and other funds. FOFs work by pooling capital from investors and allocating it in underlying funds. For the most part, FOF managers select these funds based on their performance, management quality, and investment strategy.

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