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 35 ETFs traded on the U.S. markets, Hedge Funds ETFs have total assets under management of $6.20B. The average expense ratio is 1.09%. 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 $1.10B in assets. In the last trailing year, the best-performing Hedge Funds ETF was BTAL at 12.72%. The most recent ETF launched in the Hedge Funds space was the Return Stacked Bonds & Managed Futures ETF RSBT on 02/08/23.

Top ETF Performers

TYA Simplify Risk Parity Treasury ETF 7.88%
BTAL AGF US Market Neutral Anti-Beta Fund 4.86%
NOPE Noble Absolute Return ETF 3.76%
FAAR First Trust Alternative Absolute Return Strategy ETF 1.52%
FIAX Nicholas Fixed Income Alternative ETF 0.70%

Bottom ETF Performers

CTA Simplify Managed Futures Strategy ETF -10.86%
RSBT Return Stacked Bonds & Managed Futures ETF -9.89%
DBMF iMGP DBi Managed Futures Strategy ETF -8.13%
DALT Anfield Diversified Alternatives ETF -6.79%
LBAY Leatherback Long/Short Alternative Yield ETF -4.94%

Top Creations

DBEH iMGP DBi Hedge Strategy ETF 10.47
DBMF iMGP DBi Managed Futures Strategy ETF 10.08
RSBT Return Stacked Bonds & Managed Futures ETF 6.01
RPAR RPAR Risk Parity ETF 4.46
FLSP Franklin Systematic Style Premia ETF 4.22

Top Redemptions

QAI IQ Hedge Multi-Strategy Tracker ETF -32.11
ARB AltShares Merger Arbitrage ETF -23.29
MNA IQ Merger Arbitrage ETF -18.91
FTLS First Trust Long/Short Equity ETF -17.47
BTAL AGF US Market Neutral Anti-Beta Fund -15.15

AUM Winners

RSBT Return Stacked Bonds & Managed Futures ETF 126.24%
DBEH iMGP DBi Hedge Strategy ETF 31.37%
FIAX Nicholas Fixed Income Alternative ETF 12.61%
KMLM KFA Mount Lucas Managed Futures Index Strategy ETF 10.25%
NOPE Noble Absolute Return ETF 6.93%

AUM Losers

CPI IQ Real Return ETF -30.09%
ARB AltShares Merger Arbitrage ETF -22.30%
LBAY Leatherback Long/Short Alternative Yield ETF -14.82%
DBMF iMGP DBi Managed Futures Strategy ETF -13.84%
FMF First Trust Managed Futures Strategy Fund -12.71%

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Daily ETF Watch

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Daily ETF Watch

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