A range of liquid alternative strategies have been packaged into ’40 Act funds – with daily dealing – and UCITS funds, which often also have daily dealing and must offer at least twice-monthly dealing. But so far ETFs, offering intra-day dealing, have not become a widely used vehicle for alternatives. Over 1,000 alternative UCITS exist, but we are only aware of a smaller number of alternative ETFs, in areas such as trend-following, managed futures, commodities, merger arbitrage, long/short equity, quantitative equity and senior secured loans. Few of them have raised substantial assets, and some of them are running less than $10 million. Yet overall ETF industry assets at above $3.3 trillion have now overtaken hedge fund industry assets, estimated at $3 trillion. There is speculation that some of the largest quantitative managers could soon launch active alternative ETFs, but this has not happened yet. In this interview with The Hedge Fund Journal, partner John Mahon discusses the SEC’s interest in reforming and modernizing the ETF space.