ProShares has launched the ProShares Hedge Replication ETF, benchmarked against Merrill Lynch’s hedge fund replication model.

“Many portfolios could benefit from the risk/return characteristics of hedge funds, but investors often either can’t or don’t invest in hedge funds because of a variety of challenges,” said Michael L. Sapir, chairman and CEO of ProShare Advisors, investment advisor to the ProShares funds. “We are pleased to offer an ETF that addresses challenges of hedge fund investing any may be, for many investors, an attractive alternative to hedge funds.”

The fund is ProShares’ third in its Alpha series.