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 46 ETFs traded on the U.S. markets, Hedge Funds ETFs have total assets under management of $6.07B. The average expense ratio is 1.02%. 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 $1.29B in assets. In the last trailing year, the best-performing Hedge Funds ETF was RLY at 11.98%. The most recent ETF launched in the Hedge Funds space was the Optimize AI Smart Sentiment Event Driven ETF OAIE on 06/16/22.

Top ETF Performers

BTAL AGFiQ U.S. Market Neutral Anti-Beta Fund 3.30%
DBMF iMGP DBi Managed Futures Strategy ETF 2.00%
DFND Siren DIVCON Dividend Defender ETF 0.82%
CCOR Core Alternative ETF 0.56%
KMLM KFA Mount Lucas Index Strategy ETF 0.52%

Bottom ETF Performers

PPI AXS Astoria Inflation Sensitive ETF -14.40%
RAAX VanEck Inflation Allocation ETF -8.35%
RLY SPDR SSgA Multi-Asset Real Return ETF -8.06%
CBLS Changebridge Capital Long/Short Equity ETF -7.83%
LBAY Leatherback Long/Short Alternative Yield ETF -7.48%

Top Creations

DBMF iMGP DBi Managed Futures Strategy ETF 58.95
RLY SPDR SSgA Multi-Asset Real Return ETF 53.33
BTAL AGFiQ U.S. Market Neutral Anti-Beta Fund 36.95
FMF First Trust Managed Futures Strategy Fund 25.83
RAAX VanEck Inflation Allocation ETF 21.44

Top Redemptions

QAI IQ Hedge Multi-Strategy Tracker ETF -17.50
MNA IQ Merger Arbitrage ETF -6.32
DFND Siren DIVCON Dividend Defender ETF -2.58
HDG ProShares Hedge Replication ETF -2.37
DBEH iMGP DBi Hedge Strategy ETF -1.98

AUM Winners

KMLM KFA Mount Lucas Index Strategy ETF 129.29%
DBMF iMGP DBi Managed Futures Strategy ETF 58.88%
CTA Simplify Managed Futures Strategy ETF 55.80%
MARB First Trust Merger Arbitrage ETF 52.50%
FMF First Trust Managed Futures Strategy Fund 39.79%

AUM Losers

QMN IQ Hedge Market Neutral Tracker ETF -54.51%
CPI IQ Real Return ETF -53.69%
MCRO IQ Hedge Macro Tracker ETF -34.50%
CBLS Changebridge Capital Long/Short Equity ETF -14.00%
MNA IQ Merger Arbitrage ETF -9.85%

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