Fund of Hedge Funds vs. Hedge Fund Index

A fund of hedge funds is a real fund, with management fees and mismanagement fees and transaction costs and so on.
A fund index is an index: no fees, no costs.
It’s the same as the difference between, say, an S&P 500 index fund (say, SWPPX), and the actual S&P 500 index (^GSPC on Yahoo! Finance, say).
 
So we can invest in S&P fund, but not in the index? Why some literature says that one invests in the index?
I understand that fund of funds is investable, and thus the additional fees ( second layer of fees ) compared to single hedge funds.
But, is there an investable hedge fund index? And if the concept of hedge fund index exists, could you give me a real example? Is Hedge Fund Research Relative Value index investable? Or is it multi strategy fund?
Thanks in advance!
 
jpbcologne wrote:So we can invest in S&P fund, but not in the index?
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Correct.
jpbcologne wrote:Why some literature says that one invests in the index?
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For the same reason that the literature talks about the correlation of assets when they mean the correlation of the returns on assets: finance people are sloppy.
jpbcologne wrote:I understand that fund of funds is investable, and thus the additional fees ( second layer of fees ) compared to single hedge funds.
But, is there an investable hedge fund index? And if the concept of hedge fund index exists, could you give me a real example?
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Only if there’s a fund or ETF that tracks that index.
jpbcologne wrote:Is Hedge Fund Research Relative Value index investable? Or is it multi strategy fund?
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I’m not familiar with that index, so I don’t know if there are funds or ETFs that track it.
 
I understand and will investigate further. Thanks a lot! Your direction was really helpful!
 
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