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 45 ETFs traded on the U.S. markets, Hedge Funds ETFs have total assets under management of $5.37B. The average expense ratio is 1.03%. 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 $1.62B in assets. In the last trailing year, the best-performing Hedge Funds ETF was LBAY at 24.12%. The most recent ETF launched in the Hedge Funds space was the AXS Astoria Inflation Sensitive ETF PPI on 12/30/21.

Top ETF Performers

LBAY Leatherback Long/Short Alternative Yield ETF 9.82%
RLY SPDR SSgA Multi-Asset Real Return ETF 5.79%
DIVA AGFiQ Hedged Dividend Income Fund 5.74%
BTAL AGFiQ U.S. Market Neutral Anti-Beta Fund 4.71%
RAAX VanEck Inflation Allocation ETF 4.42%

Bottom ETF Performers

EOPS Emles Alpha Opportunities ETF -14.87%
DBEH iMGP DBi Hedge Strategy ETF -14.53%
DBMF iMGP DBi Managed Futures Strategy ETF -8.95%
KMLM KFA Mount Lucas Index Strategy ETF -6.96%
DFND Siren DIVCON Dividend Defender ETF -3.90%

Top Creations

RPAR RPAR Risk Parity ETF 37.59
QAI IQ Hedge Multi-Strategy Tracker ETF 36.44
RLY SPDR SSgA Multi-Asset Real Return ETF 28.34
WTMF WisdomTree Managed Futures Strategy Fund 15.84
ARB AltShares Merger Arbitrage ETF 10.38

Top Redemptions

MNA IQ Merger Arbitrage ETF -8.02
CPI IQ Real Return ETF -5.52
MARB First Trust Merger Arbitrage ETF -2.95
ALTS ProShares Morningstar Alternatives Solution ETF -1.55
TRTY Cambria Trinity ETF -1.37

AUM Winners

PPI AXS Astoria Inflation Sensitive ETF 1,814.74%
UPAR UPAR Ultra Risk Parity ETF 547.05%
ARB AltShares Merger Arbitrage ETF 113.62%
MSVX LHA Market State Alpha Seeker ETF 40.60%
RAAX VanEck Inflation Allocation ETF 19.84%

AUM Losers

MARB First Trust Merger Arbitrage ETF -43.25%
RALS ProShares RAFI Long/Short ETF -16.66%
ALTS ProShares Morningstar Alternatives Solution ETF -15.96%
EOPS Emles Alpha Opportunities ETF -12.60%
EVNT AltShares Event-Driven ETF -9.42%

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