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 39 ETFs traded in the U.S. markets, Hedge Funds ETFs gather total assets under management of $3.24B. The average expense ratio is 1.02%. 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 $1.16B in assets. In the last trailing year, the best performing Hedge Funds ETF was the DYLS at 14.64%. The most-recent ETF launched in the Hedge Funds space was the VanEck Vectors Real Asset Allocation ETF RAAX in 04/09/18.

TOP ETF PERFORMERS

CLIXProShares Long Online/Short Stores ETF5.99%
DYLSWisdomTree Dynamic Long/Short U.S. Equity Fund3.30%
DYBWisdomTree Dynamic Bearish U.S. Equity Fund2.12%
DIVAAGFiQ Hedged Dividend Income Fund1.92%
MRGRProShares Merger ETF1.69%

BOTTOM ETF PERFORMERS

FAARFirst Trust Alternative Absolute Return Strategy ETF-2.55%
QXRRQuantX Risk Managed Real Return ETF-2.25%
JPLSJPMorgan Long/Short ETF-2.08%
JPMFJPMorgan Managed Futures Strategy ETF-1.53%
FMFFirst Trust Morningstar Managed Futures Strategy Fund-1.43%

top creations

MNAIQ Merger Arbitrage ETF29.13
RLYSPDR SSgA Multi-Asset Real Return ETF6.77
CLIXProShares Long Online/Short Stores ETF4.79
HDGProShares Hedge Replication ETF3.42
DYLSWisdomTree Dynamic Long/Short U.S. Equity Fund3.27

top redemptions

HTUSHull Tactical U.S. ETF-5.38
DBVInvesco DB G10 Currency Harvest Fund-4.86
WTMFWisdomTree Managed Futures Strategy Fund-4.00
ALTSProShares Morningstar Alternatives Solution ETF-0.38
CPIIQ Real Return ETF--

AUM WINNERS

HDGProShares Hedge Replication ETF24.30%
DYBWisdomTree Dynamic Bearish U.S. Equity Fund19.03%
FAARFirst Trust Alternative Absolute Return Strategy ETF14.81%
CLIXProShares Long Online/Short Stores ETF10.62%
VEGAAdvisorShares STAR Global Buy-Write ETF5.86%

AUM LOSERS

ALTSProShares Morningstar Alternatives Solution ETF-4.27%
HTUSHull Tactical U.S. ETF-4.05%
JPLSJPMorgan Long/Short ETF-3.22%
WTMFWisdomTree Managed Futures Strategy Fund-1.84%
FMFFirst Trust Morningstar Managed Futures Strategy Fund-0.93%

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