Do differential returns and attributes of mutual funds and exchange-traded funds compared to hedge funds have the potential to shift societal dependence on Social Security in the United States into the right direction?

Abstract

Do differential returns and attributes of mutual funds and exchange-traded funds compared to hedge funds result in an environment conducive to lesser dependence on government social insurance programs? Using samples of data pulled from Bloomberg and extensive research, the returns and attributes of mutual funds, exchange-traded funds, and hedge funds are analyzed. Comparing the three investment structures, it is found that hedge funds have significantly underperformed the other two investment structures over year-to-date, 3-year, and 5-year time horizons. Higher returns and operational characteristics of mutual funds and exchange-traded funds alludes to the fact that the average American can invest money over time in these lower-cost investments and receive relatively higher returns. This is particularly important where a country experiences a societal dependence on Social Security among recipients. With the future of Social Security threatened, or at least questioned, now is a particularly advantageous time to invest in the elicited investment structures mentioned in anticipation of differential returns, easing the pressure of dependence on Social Security.