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 36 ETFs traded in the U.S. markets, Hedge Funds ETFs gather total assets under management of $2.63B. The average expense ratio is of 1.2%. Hedge Funds ETFs can be found in the following asset classes:

  • Equity
  • Fixed Income
  • Commodities

The largest Hedge Funds ETF is the IQ Hedge Multi-Strategy Tracker ETF QAI with $1.1B in assets. In the last trailing year, the best performing Hedge Funds ETF was the DYLS at 19.11%. The most-recent ETF launched in the Hedge Funds space was the Anfield Capital Diversified Alternatives ETF DALT in 09/28/17.

TOP ETF PERFORMERS

MOMAGFiQ U.S. Market Neutral Momentum Fund4.39%
QXRRQuantX Risk Managed Real Return ETF2.81%
DYLSWisdomTree Dynamic Long/Short U.S. Equity Fund1.52%
WDTIWisdomTree Managed Futures Strategy Fund1.31%
RLYSPDR SSgA Multi-Asset Real Return ETF0.95%

BOTTOM ETF PERFORMERS

CHEPAGFiQ U.S. Market Neutral Value Fund-5.47%
ICIiPath Optimized Currency Carry ETN-3.25%
SIZAGFiQ U.S. Market Neutral Size Fund-3.13%
DIVAAGFiQ Hedged Dividend Income Fund-0.80%
DALTAnfield Capital Diversified Alternatives ETF-0.69%

top creations

MNAIQ Merger Arbitrage ETF30.80
DYLSWisdomTree Dynamic Long/Short U.S. Equity Fund21.63
DALTAnfield Capital Diversified Alternatives ETF9.44
JPHFJPMorgan Diversified Alternatives ETF7.79
QAIIQ Hedge Multi-Strategy Tracker ETF7.52

top redemptions

DBVPowerShares DB G10 Currency Harvest Fund-4.77
RALSProShares RAFI Long/Short ETF-1.88
QXTRQuantX Risk Managed Multi-Asset Total Return ETF-1.27
BTALAGFiQ U.S. Market Neutral Anti-Beta Fund-0.97
DIVYReality Shares DIVS ETF-0.65

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%

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