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 $3.32B. The average expense ratio is 1.03%. 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 $1.14B in assets. In the last trailing year, the best performing Hedge Funds ETF was the DYLS at 20.38%. The most-recent ETF launched in the Hedge Funds space was the Rogers AI Global Macro ETF BIKR in 06/21/18.

TOP ETF PERFORMERS

DYLSWisdomTree Dynamic Long/Short U.S. Equity Fund2.94%
BTALAGFiQ U.S. Market Neutral Anti-Beta Fund2.63%
JPLSJPMorgan Long/Short ETF1.99%
DYBWisdomTree Dynamic Bearish U.S. Equity Fund1.95%
DIVAAGFiQ Hedged Dividend Income Fund1.14%

BOTTOM ETF PERFORMERS

CLIXProShares Long Online/Short Stores ETF-7.68%
BIKRRogers AI Global Macro ETF-2.31%
SIZAGFiQ U.S. Market Neutral Size Fund-1.72%
LALTInvesco Multi-Strategy Alternative ETF-1.32%
RLYSPDR SSgA Multi-Asset Real Return ETF-1.30%

top creations

MNAIQ Merger Arbitrage ETF18.31
DALTAnfield Capital Diversified Alternatives ETF7.42
DYLSWisdomTree Dynamic Long/Short U.S. Equity Fund6.76
RAAXVanEck Vectors Real Asset Allocation ETF6.40
CLIXProShares Long Online/Short Stores ETF6.27

top redemptions

QAIIQ Hedge Multi-Strategy Tracker ETF-9.20
JPHFJPMorgan Diversified Alternatives ETF-5.01
WTMFWisdomTree Managed Futures Strategy Fund-4.00
HTUSHull Tactical U.S. ETF-2.74
HDGProShares Hedge Replication ETF-2.25

AUM WINNERS

BIKRRogers AI Global Macro ETF95.77%
MRGRProShares Merger ETF60.84%
RAAXVanEck Vectors Real Asset Allocation ETF27.73%
FAARFirst Trust Alternative Absolute Return Strategy ETF17.02%
DYLSWisdomTree Dynamic Long/Short U.S. Equity Fund12.65%

AUM LOSERS

QLSIQ Hedge Long/Short Tracker ETF-11.42%
ALTSProShares Morningstar Alternatives Solution ETF-4.91%
JPHFJPMorgan Diversified Alternatives ETF-1.91%
QAIIQ Hedge Multi-Strategy Tracker ETF-1.23%
RLYSPDR SSgA Multi-Asset Real Return ETF-1.20%

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