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 in the U.S. markets, Hedge Funds ETFs gather total assets under management of $3.54B. The average expense ratio is 0.95%. Hedge Funds ETFs can be found in the following asset classes:

  • Alternatives

The largest Hedge Funds ETF is the IQ Hedge Multi-Strategy Tracker ETF QAI with $1.08B in assets. In the last trailing year, the best performing Hedge Funds ETF was the BTAL at 14.35%. The most-recent ETF launched in the Hedge Funds space was the Cambria Trinity ETF TRTY in 09/10/18.

TOP ETF PERFORMERS

CLIX ProShares Long Online/Short Stores ETF 7.26%
DALT Anfield Capital Diversified Alternatives ETF 3.60%
RLY SPDR SSgA Multi-Asset Real Return ETF 3.56%
HTUS Hull Tactical U.S. ETF 3.51%
GAA Cambria Global Asset Allocation ETF 3.44%

BOTTOM ETF PERFORMERS

DYB WisdomTree Dynamic Bearish U.S. Equity Fund -3.90%
MOM AGFiQ U.S. Market Neutral Momentum Fund -1.90%
RALS ProShares RAFI Long/Short ETF -0.89%
CHEP AGFiQ U.S. Market Neutral Value Fund -0.43%
FMF First Trust Morningstar Managed Futures Strategy Fund -0.41%

TOP CREATIONS

FTLS First Trust Long/Short Equity ETF 14.61
DALT Anfield Capital Diversified Alternatives ETF 7.89
BTAL AGFiQ U.S. Market Neutral Anti-Beta Fund 6.79
MNA IQ Merger Arbitrage ETF 4.83
TRTY Cambria Trinity ETF 2.37

TOP REDEMPTIONS

QAI IQ Hedge Multi-Strategy Tracker ETF -73.51
DYLS WisdomTree Dynamic Long/Short U.S. Equity Fund -24.56
WTMF WisdomTree Managed Futures Strategy Fund -17.33
RLY SPDR SSgA Multi-Asset Real Return ETF -15.22
QXTR QuantX Risk Managed Multi-Asset Total Return ETF -13.18

AUM WINNERS

DALT Anfield Capital Diversified Alternatives ETF 23.59%
FAAR First Trust Alternative Absolute Return Strategy ETF 21.83%
TRTY Cambria Trinity ETF 13.80%
CLIX ProShares Long Online/Short Stores ETF 6.12%
VEGA AdvisorShares STAR Global Buy-Write ETF 3.74%

AUM LOSERS

QXTR QuantX Risk Managed Multi-Asset Total Return ETF -36.40%
DYLS WisdomTree Dynamic Long/Short U.S. Equity Fund -18.64%
QAI IQ Hedge Multi-Strategy Tracker ETF -18.23%
FMF First Trust Morningstar Managed Futures Strategy Fund -16.80%
JPLS JPMorgan Long/Short ETF -14.97%

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