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

Daily ETF Watch

Global X To Close 7 ETFs

Issuer will shut down roughly 12% of its total lineup.

Index Investor Corner

Swedroe: New ‘Passive’ Criticism Fails

Recent criticisms of passive management and its impact don’t reflect reality.

Daily Hot Reads

Thursday Hot Reads: Big & Cheap ETFs Win

Plus, some obscure aspects of ETF market making.

Features and News

Smaller Endowments Should Consider ETFs

The CAIA’s Hossein Kazemi says ETFs offer some key advantages over many traditional alternative investments.

Daily Hot Reads

Tuesday Hot Reads: How To Spot A Bull Or Bear Market

Also, how the Fed may sway fixed-income markets.

Daily Hot Reads

Thursday Hot Reads: Top 10 Hedge Funds Holding SPY

Also, why tracking difference in bond ETFs matters.

Index Investor Corner

Swedroe: Hedge Funds Lag In 2Q

They fail to beat a traditional diversified stock/bond portfolio.

Index Investor Corner

Swedroe: All Those Factors Shrink Alpha

As alpha becomes more explainable, it turns into beta.

Daily Hot Reads

Friday Hot Reads: Time To Kill Off The 3-ETF Portfolio

Also, Morningstar on best way to build a multifactor fund.