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 in the U.S. markets, Hedge Funds ETFs gather total assets under management of $3.66B. The average expense ratio is 1.01%. Hedge Funds ETFs can be found in the following asset classes:

  • Alternatives

The largest Hedge Funds ETF is the IQ Merger Arbitrage ETF MNA with $1.00B in assets. In the last trailing year, the best performing Hedge Funds ETF was the CLIX at 13.98%. The most-recent ETF launched in the Hedge Funds space was the RYZZ Managed Futures Strategy Plus ETF RYZZ in 03/18/19.

TOP ETF PERFORMERS

JPED JPMorgan Event Driven ETF 3.89%
DALT Anfield Capital Diversified Alternatives ETF 3.11%
RLY SPDR SSgA Multi-Asset Real Return ETF 2.65%
ALTY Global X SuperDividend Alternatives ETF 2.64%
VEGA AdvisorShares STAR Global Buy-Write ETF 2.54%

BOTTOM ETF PERFORMERS

DYB WisdomTree Dynamic Bearish U.S. Equity Fund -3.52%
JPLS JPMorgan Long/Short ETF -1.75%
BTAL AGFiQ U.S. Market Neutral Anti-Beta Fund -1.13%
MOM AGFiQ U.S. Market Neutral Momentum Fund -1.01%
MNA IQ Merger Arbitrage ETF -0.66%

TOP CREATIONS

RYZZ RYZZ Managed Futures Strategy Plus ETF 45.62
MNA IQ Merger Arbitrage ETF 41.64
WTMF WisdomTree Managed Futures Strategy Fund 15.56
RAAX VanEck Vectors Real Asset Allocation ETF 6.24
FAAR First Trust Alternative Absolute Return Strategy ETF 2.67

TOP REDEMPTIONS

QAI IQ Hedge Multi-Strategy Tracker ETF -38.94
DYLS WisdomTree Dynamic Long/Short U.S. Equity Fund -8.82
JPHF JPMorgan Diversified Alternatives ETF -8.65
FTLS First Trust Long/Short Equity ETF -7.87
RLY SPDR SSgA Multi-Asset Real Return ETF -4.99

AUM WINNERS

RYZZ RYZZ Managed Futures Strategy Plus ETF 1,764.92%
FAAR First Trust Alternative Absolute Return Strategy ETF 28.86%
RAAX VanEck Vectors Real Asset Allocation ETF 13.59%
WTMF WisdomTree Managed Futures Strategy Fund 9.77%
DALT Anfield Capital Diversified Alternatives ETF 5.91%

AUM LOSERS

MOM AGFiQ U.S. Market Neutral Momentum Fund -33.69%
DYB WisdomTree Dynamic Bearish U.S. Equity Fund -12.71%
BTAL AGFiQ U.S. Market Neutral Anti-Beta Fund -11.58%
QXTR QuantX Risk Managed Multi-Asset Total Return ETF -5.86%
CLIX ProShares Long Online/Short Stores ETF -5.56%

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