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 35 ETFs traded on the U.S. markets, Hedge Funds ETFs have total assets under management of $6.26B. 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 $1.10B in assets. In the last trailing year, the best-performing Hedge Funds ETF was RSBT at --. The most recent ETF launched in the Hedge Funds space was the Return Stacked Bonds & Managed Futures ETF RSBT on 02/08/23.

Top ETF Performers

TYA Simplify Risk Parity Treasury ETF 8.88%
OAIE Optimize AI Smart Sentiment Event-Driven ETF 4.74%
UPAR UPAR Ultra Risk Parity ETF 4.23%
BTAL AGF US Market Neutral Anti-Beta Fund 4.20%
RPAR RPAR Risk Parity ETF 3.13%

Bottom ETF Performers

CTA Simplify Managed Futures Strategy ETF -13.72%
RSBT Return Stacked Bonds & Managed Futures ETF -7.84%
DBMF iMGP DBi Managed Futures Strategy ETF -6.55%
OAIA Teucrium AiLA Long-Short Agriculture Strategy ETF -3.07%
DALT Anfield Diversified Alternatives ETF -2.58%

Top Creations

DBEH iMGP DBi Hedge Strategy ETF 10.47
DBMF iMGP DBi Managed Futures Strategy ETF 10.08
RSBT Return Stacked Bonds & Managed Futures ETF 6.01
RPAR RPAR Risk Parity ETF 4.46
FLSP Franklin Systematic Style Premia ETF 4.22

Top Redemptions

QAI IQ Hedge Multi-Strategy Tracker ETF -32.11
ARB AltShares Merger Arbitrage ETF -23.29
MNA IQ Merger Arbitrage ETF -18.91
FTLS First Trust Long/Short Equity ETF -17.47
BTAL AGF US Market Neutral Anti-Beta Fund -15.15

AUM Winners

RSBT Return Stacked Bonds & Managed Futures ETF 67.81%
FIAX Nicholas Fixed Income Alternative ETF 19.80%
CBLS Changebridge Long/Short Equity ETF 9.22%
KMLM KFA Mount Lucas Managed Futures Index Strategy ETF 8.64%
ARP PMV Adaptive Risk Parity ETF 8.44%

AUM Losers

CPI IQ Real Return ETF -27.77%
MARB First Trust Merger Arbitrage ETF -17.24%
ARB AltShares Merger Arbitrage ETF -17.07%
CTA Simplify Managed Futures Strategy ETF -16.76%
DBMF iMGP DBi Managed Futures Strategy ETF -16.12%

Features and News

Best and Worst Performing ETFs of the Year

2023 is shaping up to be a very different year than 2022.

Features and News

Best and Worst Performing ETFs of the Year

2023 is shaping up to be a very different year than 2022.

Features and News

How Investors Can Tap Into Derivatives With ETFs

Harley Bassman, managing partner at Simplify, discusses his firm’s sophisticated derivative ETF strategies.  

Daily ETF Watch

Odds & Ends: ETF Launches Sputter

However, a significant number of funds are undergoing material changes.

Daily ETF Watch

Odds & Ends: Cramer in the Spotlight

Long Jim, Short Jim ETFs began trading amid a handful of launches and closures.

Features and News

A Managed Futures ETF Shined Through the Gloom in 2022

Checking in with the manager of DBMF, one of last year’s top-performing funds.

Podcasts

IndexIQ's Bruno Sees a Market in Transition

The issuer's CIO sees opportunities in alternatives and beyond-the-headline names in equities.

Daily ETF Watch

Odds & Ends: The 2023 ETF Market Heats Up

After a very slow start, this week was a rush of activity, including 21 launches.

Daily ETF Watch

Tuttle Plans Leveraged Managed Futures ETF

The proposed fund looks to deliver 200% of the daily performance of one of 2022’s top-performing ETFs.