The world's first exchange traded fund based on actual hedge funds has launched, run by Deutsche Bank's ETF index tracking platform, db x-trackers, as demand for more sophisticated ETFs grows.

Stephane Farouze, global head of hedge fund derivatives at Deutsche Bank said: "For investors wanting access to hedge fund returns, this ground-breaking ETF offers unprecedented transparency and as well as intra day liquidity compared to at best monthly or even quarterly liquidity for a traditional hedge fund investment."