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 39 ETFs traded in the U.S. markets, Hedge Funds ETFs gather total assets under management of $3.24B. The average expense ratio is 0.99%. Hedge Funds ETFs can be found in the following asset classes:

  • Alternatives

The largest Hedge Funds ETF is the IQ Merger Arbitrage ETF MNA with $881.13M in assets. In the last trailing year, the best performing Hedge Funds ETF was the BTAL at 15.07%. The most-recent ETF launched in the Hedge Funds space was the iM DBi Managed Futures Strategy ETF DBMF in 05/08/19.

Top ETF Performers

JPLS JPMorgan Long/Short ETF 1.65%
BTAL AGFiQ U.S. Market Neutral Anti-Beta Fund 1.46%
DIVA AGFiQ Hedged Dividend Income Fund 1.46%
JPHF JPMorgan Diversified Alternatives ETF 1.06%
TRTY Cambria Trinity ETF 0.78%

Bottom ETF Performers

RYZZ RYZZ Managed Futures Strategy Plus ETF -4.14%
DYLS WisdomTree Dynamic Long/Short U.S. Equity Fund -2.95%
WTMF WisdomTree Managed Futures Strategy Fund -2.63%
RAAX VanEck Vectors Real Asset Allocation ETF -2.56%
FMF First Trust Managed Futures Strategy Fund -1.87%

Top Creations

BTAL AGFiQ U.S. Market Neutral Anti-Beta Fund 7.20
FTLS First Trust Long/Short Equity ETF 4.06
DBMF iM DBi Managed Futures Strategy ETF 2.72
DALT Anfield Capital Diversified Alternatives ETF 1.53
TRTY Cambria Trinity ETF 1.22

Top Redemptions

MNA IQ Merger Arbitrage ETF -48.29
DYLS WisdomTree Dynamic Long/Short U.S. Equity Fund -6.91
QAI IQ Hedge Multi-Strategy Tracker ETF -4.58
RLY SPDR SSgA Multi-Asset Real Return ETF -4.24
WTMF WisdomTree Managed Futures Strategy Fund -3.94

AUM Winners

QLS IQ Hedge Long/Short Tracker ETF 75.43%
BTAL AGFiQ U.S. Market Neutral Anti-Beta Fund 30.01%
QED IQ Hedge Event-Driven Tracker ETF 24.47%
HDG ProShares Hedge Replication ETF 15.99%
JPLS JPMorgan Long/Short ETF 10.52%

AUM Losers

RYZZ RYZZ Managed Futures Strategy Plus ETF -94.74%
MRGR ProShares Merger ETF -16.69%
RALS ProShares RAFI Long/Short ETF -16.13%
DBMF iM DBi Managed Futures Strategy ETF -12.35%
RAAX VanEck Vectors Real Asset Allocation ETF -6.24%

Daily ETF Watch

19 ETFs Cut Or Increase Fees

Funds are seeing changes to their expense ratios, ranging from the minute to the significant.

ETF Report

IndexIQ Embracing New ETF Era

After its acquisition by New York Life Investment Management, the ETF issuer reaps the benefits of better resources and greater opportunity for partnerships.

Daily ETF Watch

Artificial Intelligence ETF Closing

ETF Managers Group shutting down its smallest fund.

ETF.com Live Chat!

Live Chat: 2019's ETF Surprises

Dave Nadig answers readers' ETF questions in real time. Here’s the transcript.

Features and News

Top ETF Investing Ideas For Rest Of Year

ETF strategists share where they see trouble and where they see opportunity going forward.

Features and News

How To Access M&A Deals In ETFs

There are two ways to go about getting into this space.  

ETF Strategist Corner

Top ETF Picks For Each Asset Class

The team at CLS looks at why investors often underperform, and what ETFs they like best.

Daily ETF Watch

Managed Futures ETF Launches

Newcomer launches fund that takes its cues from multiple CTA hedge funds.

Daily ETF Watch

Active Factor ETFs Debut

AGFiQ rolls out two ETFs based on quantitative models.