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 42 ETFs traded in the U.S. markets, Hedge Funds ETFs gather total assets under management of $3.55B. The average expense ratio is 1.07%. Hedge Funds ETFs can be found in the following asset classes:

  • Alternatives
  • Equity

The largest Hedge Funds ETF is the IQ Merger Arbitrage ETF MNA with $966.63M in assets. In the last trailing year, the best performing Hedge Funds ETF was the DFND at 18.30%. The most-recent ETF launched in the Hedge Funds space was the First Trust Merger Arbitrage ETF MARB in 02/04/20.

Top ETF Performers

MOM AGFiQ U.S. Market Neutral Momentum Fund 7.35%
BTAL AGFiQ U.S. Market Neutral Anti-Beta Fund 3.62%
DFND Reality Shares DIVCON Dividend Defender ETF 2.42%
DBMF iM DBi Managed Futures Strategy ETF 1.81%
RPAR RPAR Risk Parity ETF 1.78%

Bottom ETF Performers

CHEP AGFiQ U.S. Market Neutral Value Fund -7.47%
WTMF WisdomTree Managed Futures Strategy Fund -2.72%
RLY SPDR SSgA Multi-Asset Real Return ETF -2.51%
RALS ProShares RAFI Long/Short ETF -1.88%
FUT ProShares Managed Futures Strategy ETF -1.87%

Top Creations

RPAR RPAR Risk Parity ETF 98.36
BTAL AGFiQ U.S. Market Neutral Anti-Beta Fund 53.26
MNA IQ Merger Arbitrage ETF 38.16
FTLS First Trust Long/Short Equity ETF 17.32
RAAX VanEck Vectors Real Asset Allocation ETF 6.40

Top Redemptions

QAI IQ Hedge Multi-Strategy Tracker ETF -23.23
WTMF WisdomTree Managed Futures Strategy Fund -3.73
JPHF JPMorgan Diversified Alternatives ETF -3.57
JPMF JPMorgan Managed Futures Strategy ETF -3.53
JPLS JPMorgan Long/Short ETF -3.28

AUM Winners

RPAR RPAR Risk Parity ETF 395.85%
FLSP Franklin Liberty Systematic Style Premia ETF 233.39%
BTAL AGFiQ U.S. Market Neutral Anti-Beta Fund 59.99%
DBMF iM DBi Managed Futures Strategy ETF 23.79%
RAAX VanEck Vectors Real Asset Allocation ETF 21.09%

AUM Losers

MOM AGFiQ U.S. Market Neutral Momentum Fund -46.38%
QED IQ Hedge Event-Driven Tracker ETF -27.91%
QLS IQ Hedge Long/Short Tracker ETF -13.19%
DYLS WisdomTree Dynamic Long/Short U.S. Equity Fund -11.13%
ALTY Global X SuperDividend Alternatives ETF -7.80%

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