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 $5.77B. 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 $1.42B in assets. In the last trailing year, the best-performing Hedge Funds ETF was KMLM at 21.96%. The most recent ETF launched in the Hedge Funds space was the Simplify Managed Futures Strategy ETF CTA on 03/07/22.

Top ETF Performers

BTAL AGFiQ U.S. Market Neutral Anti-Beta Fund 7.08%
CTA Simplify Managed Futures Strategy ETF 6.87%
DBMF iMGP DBi Managed Futures Strategy ETF 5.31%
KMLM KFA Mount Lucas Index Strategy ETF 4.47%
FMF First Trust Managed Futures Strategy Fund 2.25%

Bottom ETF Performers

EOPS Emles Alpha Opportunities ETF -12.61%
UPAR UPAR Ultra Risk Parity ETF -10.61%
RAAX VanEck Inflation Allocation ETF -8.10%
DALT Anfield Diversified Alternatives ETF -7.41%
RPAR RPAR Risk Parity ETF -7.40%

Top Creations

RLY SPDR SSgA Multi-Asset Real Return ETF 55.69
RAAX VanEck Inflation Allocation ETF 38.98
RPAR RPAR Risk Parity ETF 36.75
DBMF iMGP DBi Managed Futures Strategy ETF 22.21
FMF First Trust Managed Futures Strategy Fund 10.27

Top Redemptions

BTAL AGFiQ U.S. Market Neutral Anti-Beta Fund -25.03
QAI IQ Hedge Multi-Strategy Tracker ETF -24.60
TYA Simplify Risk Parity Treasury ETF -6.53
MNA IQ Merger Arbitrage ETF -3.19
FTLS First Trust Long/Short Equity ETF -2.37

AUM Winners

CTA Simplify Managed Futures Strategy ETF 310.02%
MARB First Trust Merger Arbitrage ETF 80.15%
DBMF iMGP DBi Managed Futures Strategy ETF 51.13%
BTAL AGFiQ U.S. Market Neutral Anti-Beta Fund 39.01%
FMF First Trust Managed Futures Strategy Fund 20.19%

AUM Losers

QED IQ Hedge Event-Driven Tracker ETF -15.07%
DFND Siren DIVCON Dividend Defender ETF -14.78%
EOPS Emles Alpha Opportunities ETF -13.55%
QAI IQ Hedge Multi-Strategy Tracker ETF -10.13%
QMN IQ Hedge Market Neutral Tracker ETF -9.85%

Daily ETF Watch

Simplify Adds Multi-Asset Macro ETF

The issuer’s newest fund offers a one-stop solution for current markets that combines exposure to other ETFs with a derivatives overlay.

Daily ETF Watch

Merk Launches Stagflation Themed ETF

‘STGF’ will hold other ETFs to try and benefit from long-term slow growth.

Features and News

Advisors Have Plenty Of Worries, But ETFs Can Help

The first day of the Exchange conference in Florida closed out with an interesting panel on advisors and ETFs.

Daily ETF Watch

JP Morgan Begins Converting 4 Mutual Funds To ETFs

A $1.1 billion inflation-managed fund is the first to convert.

Features and News

AXS To Acquire Tuttle ETFs

The two issuers aim to create a powerhouse in alternative strategies.

Features and News

NortonLifeLock Drops 12%; 206 ETFs Affected

Decline sparked by a U.K. regulator’s investigation into a planned merger.

Daily ETF Watch

ETF Odds & Ends: Closures Taking Off

Plus, iShares further expanded its family of iBonds ETFs.

Daily ETF Watch

2 Income-Focused Mutual Funds Convert To ETFs

The funds hold nearly $29 million in assets.

Daily ETF Watch

ETF Odds & Ends: Quiet Yet Eventful Week

Global events seem to have put a damper on the U.S. ETF industry.