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 40 ETFs traded in the U.S. markets, Hedge Funds ETFs gather total assets under management of $3.47B. The average expense ratio is 1.01%. 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 $988.29M in assets. In the last trailing year, the best performing Hedge Funds ETF was the BTAL at 17.18%. 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

MOM AGFiQ U.S. Market Neutral Momentum Fund 4.46%
BTAL AGFiQ U.S. Market Neutral Anti-Beta Fund 3.44%
BIKR Rogers AI Global Macro ETF 2.32%
HTUS Hull Tactical U.S. ETF 2.17%
DBMF iM DBi Managed Futures Strategy ETF 1.85%

BOTTOM ETF PERFORMERS

CHEP AGFiQ U.S. Market Neutral Value Fund -5.91%
DYLS WisdomTree Dynamic Long/Short U.S. Equity Fund -5.30%
JPED JPMorgan Event Driven ETF -4.79%
WTMF WisdomTree Managed Futures Strategy Fund -4.45%
SIZ AGFiQ U.S. Market Neutral Size Fund -3.41%

TOP CREATIONS

BTAL AGFiQ U.S. Market Neutral Anti-Beta Fund 15.46
DBMF iM DBi Managed Futures Strategy ETF 15.00
DALT Anfield Capital Diversified Alternatives ETF 4.31
MOM AGFiQ U.S. Market Neutral Momentum Fund 2.52
TRTY Cambria Trinity ETF 2.42

TOP REDEMPTIONS

QAI IQ Hedge Multi-Strategy Tracker ETF -51.06
JPHF JPMorgan Diversified Alternatives ETF -14.75
FTLS First Trust Long/Short Equity ETF -9.86
RLY SPDR SSgA Multi-Asset Real Return ETF -6.72
DYLS WisdomTree Dynamic Long/Short U.S. Equity Fund -4.32

AUM WINNERS

MOM AGFiQ U.S. Market Neutral Momentum Fund 56.67%
BTAL AGFiQ U.S. Market Neutral Anti-Beta Fund 34.53%
DALT Anfield Capital Diversified Alternatives ETF 11.05%
ALTY Global X SuperDividend Alternatives ETF 3.67%
QLS IQ Hedge Long/Short Tracker ETF 1.99%

AUM LOSERS

BIKR Rogers AI Global Macro ETF -22.36%
DBMF iM DBi Managed Futures Strategy ETF -14.38%
RALS ProShares RAFI Long/Short ETF -12.34%
DYLS WisdomTree Dynamic Long/Short U.S. Equity Fund -10.34%
JPHF JPMorgan Diversified Alternatives ETF -7.77%

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