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 43 ETFs traded in the U.S. markets, Hedge Funds ETFs gather total assets under management of $3.11B. The average expense ratio is 1.06%. 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 $738.70M in assets. In the last trailing year, the best performing Hedge Funds ETF was the BTAL at 24.30%. The most-recent ETF launched in the Hedge Funds space was the First Trust Merger Arbitrage ETF MARB in 02/04/20.

Top ETF Performers

MOM AGFiQ U.S. Market Neutral Momentum Fund 8.10%
FMF First Trust Managed Futures Strategy Fund 3.59%
FUT ProShares Managed Futures Strategy ETF 3.24%
CCOR Core Alternative ETF 2.64%
BTAL AGFiQ U.S. Market Neutral Anti-Beta Fund 2.11%

Bottom ETF Performers

ALTY Global X SuperDividend Alternatives ETF -34.70%
DIVY Reality Shares DIVS ETF -33.57%
DALT Anfield Capital Diversified Alternatives ETF -25.62%
RAAX VanEck Vectors Real Asset Allocation ETF -19.03%
HTUS Hull Tactical U.S. ETF -17.94%

Top Creations

RPAR RPAR Risk Parity ETF 92.54
DFND Reality Shares DIVCON Dividend Defender ETF 15.63
FTLS First Trust Long/Short Equity ETF 5.56
QED IQ Hedge Event-Driven Tracker ETF 5.41
QLS IQ Hedge Long/Short Tracker ETF 4.49

Top Redemptions

MNA IQ Merger Arbitrage ETF -141.23
BTAL AGFiQ U.S. Market Neutral Anti-Beta Fund -93.76
WTMF WisdomTree Managed Futures Strategy Fund -23.32
JPHF JPMorgan Diversified Alternatives ETF -14.29
RLY SPDR SSgA Multi-Asset Real Return ETF -13.97

AUM Winners

FMF First Trust Managed Futures Strategy Fund 169.71%
DFND Reality Shares DIVCON Dividend Defender ETF 127.23%
MOM AGFiQ U.S. Market Neutral Momentum Fund 108.91%
FUT ProShares Managed Futures Strategy ETF 52.35%
RPAR RPAR Risk Parity ETF 21.89%

AUM Losers

DBEH iM DBi Hedge Strategy ETF -64.35%
DIVY Reality Shares DIVS ETF -54.97%
ALTY Global X SuperDividend Alternatives ETF -44.94%
RAAX VanEck Vectors Real Asset Allocation ETF -43.37%
HTUS Hull Tactical U.S. ETF -37.01%

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