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 $3.29B. The average expense ratio is 1.10%. Hedge Funds ETFs can be found in the following asset classes:

  • Alternatives
  • Equity

The largest Hedge Funds ETF is the IQ Hedge Multi-Strategy Tracker ETF QAI with $755.72M in assets. In the last trailing year, the best performing Hedge Funds ETF was the MOM at 20.37%. The most-recent ETF launched in the Hedge Funds space was the LHA Market State Alpha Seeker ETF MSVX in 05/13/20.

Top ETF Performers

DIVY Reality Shares DIVS ETF 12.98%
ICI iPath Optimized Currency Carry ETN 6.25%
DBEH iM DBi Hedge Strategy ETF 3.09%
FAAR First Trust Alternative Absolute Return Strategy ETF 2.20%
GAA Cambria Global Asset Allocation ETF 2.06%

Bottom ETF Performers

MSVX LHA Market State Alpha Seeker ETF -6.06%
DIVA AGFiQ Hedged Dividend Income Fund -3.07%
CHEP AGFiQ U.S. Market Neutral Value Fund -3.00%
CCOR Core Alternative ETF -2.16%
DBMF iM DBi Managed Futures Strategy ETF -2.12%

Top Creations

RPAR RPAR Risk Parity ETF 36.86
BTAL AGFiQ U.S. Market Neutral Anti-Beta Fund 34.53
WTMF WisdomTree Managed Futures Strategy Fund 13.98
DBMF iM DBi Managed Futures Strategy ETF 3.08
HDG ProShares Hedge Replication ETF 2.32

Top Redemptions

QAI IQ Hedge Multi-Strategy Tracker ETF -70.14
MNA IQ Merger Arbitrage ETF -31.46
DIVY Reality Shares DIVS ETF -10.60
RLY SPDR SSgA Multi-Asset Real Return ETF -4.26
CCOR Core Alternative ETF -2.79

AUM Winners

ARB AltShares Merger Arbitrage ETF 31.71%
BTAL AGFiQ U.S. Market Neutral Anti-Beta Fund 20.09%
WTMF WisdomTree Managed Futures Strategy Fund 14.41%
QLS IQ Hedge Long/Short Tracker ETF 11.52%
RPAR RPAR Risk Parity ETF 9.51%

AUM Losers

DIVY Reality Shares DIVS ETF -22.75%
FUT ProShares Managed Futures Strategy ETF -19.22%
QAI IQ Hedge Multi-Strategy Tracker ETF -8.36%
MSVX LHA Market State Alpha Seeker ETF -7.43%
MNA IQ Merger Arbitrage ETF -6.23%

Daily ETF Watch

iShares Adds Ultra Short Bond ETF

New fund targets Treasuries with three months or less to maturity.

Features and News

5 Questions On Hedge Fund Replication ETFs

Dynamic Beta’s Andrew Beer offers tips on navigating this alternative space.

Features and News

Navigating Complexity In Liquid Alt ETFs

Hedge fund replication and other alternatives ETFs are great diversifiers, but going under the hood can be daunting.

Daily ETF Watch

JP Morgan Closing Alts ETF Lineup

Issuer is shutting down all of its ETFs covering alternative strategies.

ETF Report

 The Annual ETF.com Awards

Please join us in celebrating the best of the best in the ETF industry in 2019.

Podcasts

ETF Prime Podcast: Biggest Oil ETF In Focus

Plus, why education is key with futures-based products, and the role of alts investments.

Features and News

2019 ETF.com Award Winners

The winners reflect a diverse and maturing ETF industry.

Features and News

Beating The Downturn With Alt ETFs

These off-the-beaten-path strategies can offer different returns, but due diligence is mandatory.

Features and News

Big ETF Investing Ideas For 2020

IndexIQ’s Sal Bruno shares his best investing ideas from alternatives to fixed income to international ETF plays.