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 42 ETFs traded on the U.S. markets, Hedge Funds ETFs have total assets under management of $5.07B. The average expense ratio is 1.07%. Hedge Funds ETFs can be found in the following asset classes:

  • Alternatives
  • Equity

The largest Hedge Funds ETF is the RPAR Risk Parity ETF RPAR with $1.45B in assets. In the last trailing year, the best-performing Hedge Funds ETF was ALTY at 34.45%. The most recent ETF launched in the Hedge Funds space was the Emles Alpha Opportunities ETF EOPS on 06/09/21.

Top ETF Performers

CBLS Changebridge Capital Long/Short Equity ETF 2.61%
MARB First Trust Merger Arbitrage ETF 1.57%
MRGR ProShares Merger ETF 1.16%
ARB AltShares Merger Arbitrage ETF 1.06%
RPAR RPAR Risk Parity ETF 1.04%

Bottom ETF Performers

EOPS Emles Alpha Opportunities ETF -2.55%
CCOR Core Alternative ETF -2.30%
LBAY Leatherback Long/Short Alternative Yield ETF -2.22%
DIVA AGFiQ Hedged Dividend Income Fund -1.60%
RALS ProShares RAFI Long/Short ETF -1.48%

Top Creations

RPAR RPAR Risk Parity ETF 42.89
CCOR Core Alternative ETF 21.18
RLY SPDR SSgA Multi-Asset Real Return ETF 10.27
MNA IQ Merger Arbitrage ETF 4.94
FTLS First Trust Long/Short Equity ETF 4.94

Top Redemptions

DBEH iM DBi Hedge Strategy ETF -1.63
RAAX VanEck Inflation Allocation ETF -1.28
MARB First Trust Merger Arbitrage ETF -0.97
ALTY Global X SuperDividend Alternatives ETF -0.54
CBLS Changebridge Capital Long/Short Equity ETF -0.26

AUM Winners

QED IQ Hedge Event-Driven Tracker ETF 28.35%
ASPY ASYMshares ASYMmetric 500 ETF 21.75%
CCOR Core Alternative ETF 15.60%
DBV Invesco DB G10 Currency Harvest Fund 10.51%
QLS IQ Hedge Long/Short Tracker ETF 9.75%

AUM Losers

MARB First Trust Merger Arbitrage ETF -7.65%
DBEH iM DBi Hedge Strategy ETF -7.27%
RAAX VanEck Inflation Allocation ETF -4.11%
ALTY Global X SuperDividend Alternatives ETF -3.71%
LBAY Leatherback Long/Short Alternative Yield ETF -2.30%

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