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 $3.50B. The average expense ratio is 0.98%. 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 $1.18B in assets. In the last trailing year, the best performing Hedge Funds ETF was the BTAL at 9.39%. 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 10.51%
HTUS Hull Tactical U.S. ETF 6.65%
DYLS WisdomTree Dynamic Long/Short U.S. Equity Fund 3.49%
DALT Anfield Capital Diversified Alternatives ETF 3.39%
JPED JPMorgan Event Driven ETF 2.86%

BOTTOM ETF PERFORMERS

FAAR First Trust Alternative Absolute Return Strategy ETF -2.77%
RLY SPDR SSgA Multi-Asset Real Return ETF -2.02%
BTAL AGFiQ U.S. Market Neutral Anti-Beta Fund -1.58%
FMF First Trust Morningstar Managed Futures Strategy Fund -1.45%
SIZ AGFiQ U.S. Market Neutral Size Fund -0.97%

TOP CREATIONS

MNA IQ Merger Arbitrage ETF 52.23
TRTY Cambria Trinity ETF 8.68
BTAL AGFiQ U.S. Market Neutral Anti-Beta Fund 8.52
JPHF JPMorgan Diversified Alternatives ETF 8.43
CPI IQ Real Return ETF 8.33

TOP REDEMPTIONS

QAI IQ Hedge Multi-Strategy Tracker ETF -8.87
DIVY Reality Shares DIVS ETF -7.32
HDG ProShares Hedge Replication ETF -4.29
FTLS First Trust Long/Short Equity ETF -3.82
FAAR First Trust Alternative Absolute Return Strategy ETF -2.74

AUM WINNERS

LALT Invesco Multi-Strategy Alternative ETF 51.28%
TRTY Cambria Trinity ETF 28.74%
WTMF WisdomTree Managed Futures Strategy Fund 21.93%
BTAL AGFiQ U.S. Market Neutral Anti-Beta Fund 14.65%
FAAR First Trust Alternative Absolute Return Strategy ETF 13.78%

AUM LOSERS

FUT ProShares Managed Futures Strategy ETF -38.66%
CLIX ProShares Long Online/Short Stores ETF -9.25%
RLY SPDR SSgA Multi-Asset Real Return ETF -7.30%
DYB WisdomTree Dynamic Bearish U.S. Equity Fund -6.86%
VEGA AdvisorShares STAR Global Buy-Write ETF -6.43%

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