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 38 ETFs traded in the U.S. markets, Hedge Funds ETFs gather total assets under management of $3.68B. The average expense ratio is 1.12%. Hedge Funds ETFs can be found in the following asset classes:

  • Alternatives
  • Equity

The largest Hedge Funds ETF is the RPAR Risk Parity ETF RPAR with $753.75M in assets. In the last trailing year, the best performing Hedge Funds ETF was the MOM at 19.05%. The most-recent ETF launched in the Hedge Funds space was the LHA Market State Alpha Seeker ETF MSVX in 05/13/20.

Top ETF Performers

MNA IQ Merger Arbitrage ETF 1.05%
HTUS Hull Tactical U.S. ETF 0.47%
RALS ProShares RAFI Long/Short ETF 0.12%
FUT ProShares Managed Futures Strategy ETF 0.11%
CCOR Core Alternative ETF 0.05%

Bottom ETF Performers

FTLS First Trust Long/Short Equity ETF -4.14%
CHEP AGFiQ U.S. Market Neutral Value Fund -3.58%
BTAL AGFiQ U.S. Market Neutral Anti-Beta Fund -3.03%
RAAX VanEck Vectors Real Asset Allocation ETF -2.92%
VEGA AdvisorShares STAR Global Buy-Write ETF -2.46%

Top Creations

RPAR RPAR Risk Parity ETF 123.76
DBMF iM DBi Managed Futures Strategy ETF 14.54
DFND Reality Shares DIVCON Dividend Defender ETF 11.58
DBEH iM DBi Hedge Strategy ETF 9.41
WTMF WisdomTree Managed Futures Strategy Fund 8.81

Top Redemptions

RAAX VanEck Vectors Real Asset Allocation ETF -4.26
QMN IQ Hedge Market Neutral Tracker ETF -1.35
GAA Cambria Global Asset Allocation ETF -1.33
HTUS Hull Tactical U.S. ETF -1.30
DALT Anfield Capital Diversified Alternatives ETF -0.86

AUM Winners

FUT ProShares Managed Futures Strategy ETF 35.09%
DFND Reality Shares DIVCON Dividend Defender ETF 17.47%
QLS IQ Hedge Long/Short Tracker ETF 17.19%
DBEH iM DBi Hedge Strategy ETF 12.43%
FAAR First Trust Alternative Absolute Return Strategy ETF 10.90%

AUM Losers

MSVX LHA Market State Alpha Seeker ETF -15.04%
QMN IQ Hedge Market Neutral Tracker ETF -6.72%
CCOR Core Alternative ETF -6.31%
WTMF WisdomTree Managed Futures Strategy Fund -5.34%
TRTY Cambria Trinity ETF -4.34%

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