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 41 ETFs traded on the U.S. markets, Hedge Funds ETFs have total assets under management of $4.52B. The average expense ratio is 1.08%. 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 $1.24B in assets. In the last trailing year, the best-performing Hedge Funds ETF was HTUS at 52.15%. The most recent ETF launched in the Hedge Funds space was the Formidable ETF FORH on 04/30/21.

Top ETF Performers

KMLM KFA Mount Lucas Index Strategy ETF 6.83%
RLY SPDR SSgA Multi-Asset Real Return ETF 5.68%
WTMF WisdomTree Managed Futures Strategy Fund 5.58%
LBAY Leatherback Long/Short Alternative Yield ETF 5.43%
ALTY Global X SuperDividend Alternatives ETF 5.11%

Bottom ETF Performers

BTAL AGFiQ U.S. Market Neutral Anti-Beta Fund -2.02%
CBLS Changebridge Capital Long/Short Equity ETF -1.18%
MSVX LHA Market State Alpha Seeker ETF -0.59%
QED IQ Hedge Event-Driven Tracker ETF -0.57%
FUT ProShares Managed Futures Strategy ETF -0.39%

Top Creations

QAI IQ Hedge Multi-Strategy Tracker ETF 31.71
RPAR RPAR Risk Parity ETF 19.12
FTLS First Trust Long/Short Equity ETF 14.10
RLY SPDR SSgA Multi-Asset Real Return ETF 7.39
CCOR Core Alternative ETF 7.25

Top Redemptions

VEGA AdvisorShares STAR Global Buy-Write ETF -1.95
QLS IQ Hedge Long/Short Tracker ETF -1.30
DFND Siren DIVCON Dividend Defender ETF -1.03
QMN IQ Hedge Market Neutral Tracker ETF 0.00
ARB AltShares Merger Arbitrage ETF 0.00

AUM Winners

MARB First Trust Merger Arbitrage ETF 31.92%
BTAL AGFiQ U.S. Market Neutral Anti-Beta Fund 19.01%
RLY SPDR SSgA Multi-Asset Real Return ETF 17.26%
DBMF iM DBi Managed Futures Strategy ETF 15.77%
QED IQ Hedge Event-Driven Tracker ETF 13.63%

AUM Losers

DFND Siren DIVCON Dividend Defender ETF -20.34%
QLS IQ Hedge Long/Short Tracker ETF -16.74%
QMN IQ Hedge Market Neutral Tracker ETF -13.29%
QAI IQ Hedge Multi-Strategy Tracker ETF -10.24%
MSVX LHA Market State Alpha Seeker ETF -0.68%

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