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 $3.41B. The average expense ratio is 1.05%. 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 $1.17B in assets. In the last trailing year, the best performing Hedge Funds ETF was the DYLS at 9.48%. The most-recent ETF launched in the Hedge Funds space was the Cambria Trinity ETF TRTY in 09/10/18.

TOP ETF PERFORMERS

RALS ProShares RAFI Long/Short ETF 1.02%
DBV Invesco DB G10 Currency Harvest Fund 0.96%
JPLS JPMorgan Long/Short ETF 0.89%
BTAL AGFiQ U.S. Market Neutral Anti-Beta Fund 0.64%
MNA IQ Merger Arbitrage ETF 0.51%

BOTTOM ETF PERFORMERS

CLIX ProShares Long Online/Short Stores ETF -7.62%
DALT Anfield Capital Diversified Alternatives ETF -5.99%
DYLS WisdomTree Dynamic Long/Short U.S. Equity Fund -5.49%
QXRR QuantX Risk Managed Real Return ETF -4.61%
VEGA AdvisorShares STAR Global Buy-Write ETF -4.49%

TOP CREATIONS

QAI IQ Hedge Multi-Strategy Tracker ETF 36.65
WTMF WisdomTree Managed Futures Strategy Fund 16.22
DYLS WisdomTree Dynamic Long/Short U.S. Equity Fund 16.01
TRTY Cambria Trinity ETF 5.01
MNA IQ Merger Arbitrage ETF 4.74

TOP REDEMPTIONS

CLIX ProShares Long Online/Short Stores ETF -7.08
JPHF JPMorgan Diversified Alternatives ETF -6.22
MOM AGFiQ U.S. Market Neutral Momentum Fund -3.78
MRGR ProShares Merger ETF -3.65
GAA Cambria Global Asset Allocation ETF -1.33

AUM WINNERS

TRTY Cambria Trinity ETF 334.54%
DYB WisdomTree Dynamic Bearish U.S. Equity Fund 81.23%
BTAL AGFiQ U.S. Market Neutral Anti-Beta Fund 38.97%
DYLS WisdomTree Dynamic Long/Short U.S. Equity Fund 16.57%
CPI IQ Real Return ETF 12.88%

AUM LOSERS

MOM AGFiQ U.S. Market Neutral Momentum Fund -44.75%
CLIX ProShares Long Online/Short Stores ETF -19.10%
RALS ProShares RAFI Long/Short ETF -14.73%
HDG ProShares Hedge Replication ETF -11.71%
GAA Cambria Global Asset Allocation ETF -6.43%

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