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 on the U.S. markets, Hedge Funds ETFs have total assets under management of $4.09B. 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 $1.05B in assets. In the last trailing year, the best-performing Hedge Funds ETF was DBEH at 25.23%. The most recent ETF launched in the Hedge Funds space was the KFA Mount Lucas Index Strategy ETF KMLM on 12/02/20.

Top ETF Performers

CBLS Changebridge Capital Long/Short Equity ETF 9.74%
TRTY Cambria Trinity ETF 4.95%
WTMF WisdomTree Managed Futures Strategy Fund 4.83%
DBEH iM DBi Hedge Strategy ETF 4.83%
RAAX VanEck Vectors Real Asset Allocation ETF 4.75%

Bottom ETF Performers

BTAL AGFiQ U.S. Market Neutral Anti-Beta Fund -2.88%
MOM AGFiQ U.S. Market Neutral Momentum Fund -1.77%
MSVX LHA Market State Alpha Seeker ETF -0.61%
MNA IQ Merger Arbitrage ETF -0.60%
ARB AltShares Merger Arbitrage ETF -0.13%

Top Creations

QAI IQ Hedge Multi-Strategy Tracker ETF 48.43
RPAR RPAR Risk Parity ETF 46.79
KMLM KFA Mount Lucas Index Strategy ETF 25.28
RAAX VanEck Vectors Real Asset Allocation ETF 9.45
MNA IQ Merger Arbitrage ETF 5.11

Top Redemptions

BTAL AGFiQ U.S. Market Neutral Anti-Beta Fund -18.33
MSVX LHA Market State Alpha Seeker ETF -5.49
DBEH iM DBi Hedge Strategy ETF -5.25
DBMF iM DBi Managed Futures Strategy ETF -4.44
WTMF WisdomTree Managed Futures Strategy Fund -3.67

AUM Winners

RAAX VanEck Vectors Real Asset Allocation ETF 212.66%
LBAY Leatherback Long/Short Alternative Yield ETF 22.94%
RPAR RPAR Risk Parity ETF 14.10%
KMLM KFA Mount Lucas Index Strategy ETF 10.35%
CCOR Core Alternative ETF 10.28%

AUM Losers

BTAL AGFiQ U.S. Market Neutral Anti-Beta Fund -9.40%
DFND Siren DIVCON Dividend Defender ETF -6.85%
HTUS Hull Tactical U.S. ETF -6.61%
DBEH iM DBi Hedge Strategy ETF -5.79%
DBMF iM DBi Managed Futures Strategy ETF -4.56%

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