Investors parking their money in ETFs while waiting for more attractive deals
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WITH private equity firms sitting on a record amount of cash that they're struggling to invest, their clients are turning to exchange traded funds (ETFs) for relief.
BlackRock Inc and State Street Corp, two of the world's biggest providers of ETFs, say an increasing number of institutional investors are using their products to park money earmarked for private funds. These investors - pension plans, foundations and endowments that are under pressure to meet obligations - are trying to eke out an extra return on cash that would otherwise languish in a money market fund.
