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 $3.14B. The average expense ratio is 1.03%. 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 $1.13B in assets. In the last trailing year, the best performing Hedge Funds ETF was the MOM at 16.85%. 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

RLYSPDR SSgA Multi-Asset Real Return ETF3.91%
QXRRQuantX Risk Managed Real Return ETF3.74%
FMFFirst Trust Morningstar Managed Futures Strategy Fund2.52%
BTALAGFiQ U.S. Market Neutral Anti-Beta Fund2.47%
FAARFirst Trust Alternative Absolute Return Strategy ETF2.25%

BOTTOM ETF PERFORMERS

CLIXProShares Long Online/Short Stores ETF-3.82%
FTLSFirst Trust Long/Short Equity ETF-2.03%
QLSIQ Hedge Long/Short Tracker ETF-1.08%
MCROIQ Hedge Macro Tracker ETF-0.60%
MRGRProShares Merger ETF-0.50%

top creations

MNAIQ Merger Arbitrage ETF53.93
JPHFJPMorgan Diversified Alternatives ETF18.93
CLIXProShares Long Online/Short Stores ETF12.20
RLYSPDR SSgA Multi-Asset Real Return ETF9.11
GAACambria Global Asset Allocation ETF4.12

top redemptions

QAIIQ Hedge Multi-Strategy Tracker ETF-24.50
HTUSHull Tactical U.S. ETF-10.55
HDGProShares Hedge Replication ETF-6.82
WTMFWisdomTree Managed Futures Strategy Fund-3.96
QXTRQuantX Risk Managed Multi-Asset Total Return ETF-3.80

AUM WINNERS

CPIIQ Real Return ETF43.88%
DYBWisdomTree Dynamic Bearish U.S. Equity Fund20.17%
MOMAGFiQ U.S. Market Neutral Momentum Fund17.50%
JPHFJPMorgan Diversified Alternatives ETF16.61%
GAACambria Global Asset Allocation ETF8.67%

AUM LOSERS

RALSProShares RAFI Long/Short ETF-12.84%
CLIXProShares Long Online/Short Stores ETF-12.26%
HTUSHull Tactical U.S. ETF-6.76%
VEGAAdvisorShares STAR Global Buy-Write ETF-5.37%
HDGProShares Hedge Replication ETF-3.15%

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