Bear Stearns isn't sharing the details of the thinking behind its new ETF, but the about to be launched fund has a unique twist. The WSJ Fund Track column uncovered through the prospectus that the fund pays institutional traders out in cash rather than in kind.

The goal of the ETF, according to the article, is to invest in money-market and short-term fixed-income obligations, including U.S. government securities, bank obligations, U.S.-dollar-denominated foreign-bank obligations, corporate debt obligations and other income instruments.

In short. it looks a lot like a short-term fixed income fund. That, combined with the unique redemption provision would leave one to think that Beaer Stearns is targeting the fund to hedge fund clients and other institutional quick traders looking for a place to park their cash. We can only speculate. 

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