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.


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%


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


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%


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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