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

With 40 ETFs traded in the U.S. markets, Hedge Funds ETFs gather total assets under management of $2.63B. The average expense ratio is 1.04%. Hedge Funds ETFs can be found in the following asset classes:

  • Alternatives

The largest Hedge Funds ETF is the IQ Hedge Multi-Strategy Tracker ETF QAI with $1.14B in assets. In the last trailing year, the best performing Hedge Funds ETF was the DYLS at 16.03%. The most-recent ETF launched in the Hedge Funds space was the JPMorgan Long/Short ETF JPLS in 01/23/18.

TOP ETF PERFORMERS

CLIXProShares Long Online/Short Stores ETF8.66%
ICIiPath Optimized Currency Carry ETN2.66%
MOMAGFiQ U.S. Market Neutral Momentum Fund2.20%
LALTPowerShares Multi-strategy Alternative Portfolio1.73%
BTALAGFiQ U.S. Market Neutral Anti-Beta Fund1.30%

BOTTOM ETF PERFORMERS

HTUSHull Tactical U.S. ETF-5.30%
QXRRQuantX Risk Managed Real Return ETF-5.15%
RLYSPDR SSgA Multi-Asset Real Return ETF-3.54%
JPHFJPMorgan Diversified Alternatives ETF-3.48%
QXTRQuantX Risk Managed Multi-Asset Total Return ETF-3.17%

top creations

MNAIQ Merger Arbitrage ETF34.59
JPHFJPMorgan Diversified Alternatives ETF17.12
DYLSWisdomTree Dynamic Long/Short U.S. Equity Fund15.06
DALTAnfield Capital Diversified Alternatives ETF12.30
WTMFWisdomTree Managed Futures Strategy Fund12.11

top redemptions

QAIIQ Hedge Multi-Strategy Tracker ETF-27.88
DIVAAGFiQ Hedged Dividend Income Fund-7.39
QXTRQuantX Risk Managed Multi-Asset Total Return ETF-6.58
RALSProShares RAFI Long/Short ETF-1.87
FUTProShares Managed Futures Strategy ETF-1.00

AUM WINNERS

DALTAnfield Capital Diversified Alternatives ETF933.20%
DYLSWisdomTree Dynamic Long/Short U.S. Equity Fund35.20%
FAARFirst Trust Alternative Absolute Return Strategy ETF21.80%
MNAIQ Merger Arbitrage ETF9.94%
GAACambria Global Asset Allocation ETF9.92%

AUM LOSERS

DBVPowerShares DB G10 Currency Harvest Fund-12.31%
BTALAGFiQ U.S. Market Neutral Anti-Beta Fund-10.10%
RALSProShares RAFI Long/Short ETF-9.01%
ALTSProShares Morningstar Alternatives Solution ETF-3.15%
SIZAGFiQ U.S. Market Neutral Size Fund-1.93%

Features and News

ETF Investors Talk Market Turmoil

From the end of complacency to staying the course, ETF strategists are calling what they see as best ideas in the face of a market downturn.  

Daily ETF Watch

JP Morgan Adds To Alts ETF Lineup

Firm debuts long/short fund.

Index Investor Corner

Swedroe: Lessons Of 2017, Part 3

Wrapping up a look at the key takeaways from 2017. 

Daily ETF Watch

1st Blockchain ETFs Among New Launches

Six funds made their debuts so far during the shortened week.

Index Investor Corner

Swedroe: Hedge Fund Losing Persists

It’s been nine-straight years of underperformance, according to the data.

Features and News

One Strategist’s ETF Playbook For 2018

It’s that time when money managers begin to look ahead into the new year.

Index Investor Corner

Swedroe: Distinctive Hedge Funds Still Lag

Unique approaches don’t improve hedge fund performance.

ETF Strategist Corner

Gold, Alts & Treasury ETFs Remain Relevant

It’s all about diversification.

Daily ETF Watch

JP Morgan Launching Managed Futures ETF

Fund is latest addition to its alternatives lineup.