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English 한국어 From the perspective of institutional investors, the primary advantages of allocating capital to alternative assets—namely private equity (PE), private debt (PD), and real estate—over Exchange Traded Funds (ETFs) are highly distinct when evaluated through the lenses of long-term returns, diversification, and risk management. While ETFs offer superior liquidity and transparency, institutions often leverage their long investment horizons to capture an "illiquidity premium" and generate alpha. 1. Long-term Returns The Illiquidity Premium: Because private assets cannot be readily sold on public exchanges, investors are compensated with an illiquidity premium. Institutional investors, such as pension funds and endowments, do not require daily liquidity. This allows them to lock up capital for 7 to 10 years in exchange for higher absolute returns compared to highly liquid public markets. Active Value Creation (Pri...