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 44 ETFs traded on the U.S. markets, Hedge Funds ETFs have total assets under management of $5.14B. The average expense ratio is 1.05%. 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 $1.55B in assets. In the last trailing year, the best-performing Hedge Funds ETF was ZIG at 34.40%. The most recent ETF launched in the Hedge Funds space was the AltShares Event-Driven ETF EVNT on 09/17/21.

Top ETF Performers

DFND Siren DIVCON Dividend Defender ETF 5.10%
ZIG The Acquirers Fund 2.72%
FLSP Franklin Liberty Systematic Style Premia ETF 2.27%
BTAL AGFiQ U.S. Market Neutral Anti-Beta Fund 1.40%
EOPS Emles Alpha Opportunities ETF 0.84%

Bottom ETF Performers

CBLS Changebridge Capital Long/Short Equity ETF -5.22%
FAAR First Trust Alternative Absolute Return Strategy ETF -4.97%
RAAX VanEck Inflation Allocation ETF -4.81%
RLY SPDR SSgA Multi-Asset Real Return ETF -4.71%
DBV Invesco DB G10 Currency Harvest Fund -4.45%

Top Creations

RPAR RPAR Risk Parity ETF 37.44
FTLS First Trust Long/Short Equity ETF 17.51
RLY SPDR SSgA Multi-Asset Real Return ETF 16.67
WTMF WisdomTree Managed Futures Strategy Fund 10.83
CCOR Core Alternative ETF 10.33

Top Redemptions

QAI IQ Hedge Multi-Strategy Tracker ETF -12.73
MNA IQ Merger Arbitrage ETF -3.29
ZIG The Acquirers Fund -2.89
MARB First Trust Merger Arbitrage ETF -0.99
MSVX LHA Market State Alpha Seeker ETF -0.63

AUM Winners

ASPY ASYMshares ASYMmetric S&P 500 ETF 19.95%
CPI IQ Real Return ETF 14.55%
ARB AltShares Merger Arbitrage ETF 10.61%
RAAX VanEck Inflation Allocation ETF 8.88%
DFND Siren DIVCON Dividend Defender ETF 8.02%

AUM Losers

BTAL AGFiQ U.S. Market Neutral Anti-Beta Fund -7.91%
DBEH iM DBi Hedge Strategy ETF -7.11%
HDG ProShares Hedge Replication ETF -5.65%
CBLS Changebridge Capital Long/Short Equity ETF -5.13%
KMLM KFA Mount Lucas Index Strategy ETF -4.42%

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