Hedge Funds ETF Overview

Hedge funds are private pools of capital organized in a limited partnership. They are associated with high risk and sophisticated strategies to realize large gains.

The most common hedge fund category is absolute-returns funds. These funds aim to reach a predetermined rate of return regardless of the market environment. Their role is not to replace equity exposure but to improve the risk/return profile of a portfolio.

Recently, several ETFs have started to mimic these hedge fund strategies. Hedge fund ETFs include funds in the following categories:

  • Broad-Based Hedge Fund Replication
  • Long/Short ETFs
  • Managed Futures ETFs
  • Merger Abitrage ETFs
  • Real Return Funds

Index Investor Corner

Swedroe: Hedge Funds Eschew Low Vol Anomaly

An exploration of why hedge funds embrace high-volatility stocks despite the outperformance of low-volatility stocks. 

Index Investor Corner

Swedroe: Moral Hazard In Hedge Fund Fees

And why a fund with a systematic approach avoids this problem.

Features and News

How Hedge Funds Use ETFs

Bloomberg's Eric Balchunas discusses which ETFs hedge funds are using and how they're using them.

Features and News

Tuesday Hot Reads: Are You In The Right Sectors? 2017’s ETF Winners

Also, defense ETFs charge on Trump's plan to boost military spending.

Features and News

Monday Hot Reads: 3 ETFs To Help You Build Retirement Wealth

Also, Buffett smokes hedge funds in wager.

Features and News

Wednesday Hot Reads: Best Commodity Trade You Missed

Also, S&P 500 already trading at levels forecast for year-end.

Index Investor Corner

Swedroe: Hedge Fund Managers Reflect Their Cars

The type of car a hedge fund manager chooses can speak volumes about his investment approach.

Features and News

Tuesday Hot Reads: Greek Bonds Rally As Bailout Odds Rise

Plus: Check out how top hedge fund holdings compare to the S&P 500.

Features and News

Soros Exits Gold, Paulson Cuts GLD Stake

Yellow metal had it poorest quarterly showing in more than three years in Q3.