Hedge fund refers to a limited partnership where assets are pooled together and there is a designated manager or team responsible for overseeing how the funds are invested. The ultimate goal of a hedge fund is to deliver outsized returns compared to broad-based market benchmarks; in that same spirit, hedge funds aim to provide positive absolute returns regardless of which way the market is trending. One of the ways that hedge funds can achieve their objectives is to employ the use of sophisticated trading strategies, derivatives, short-selling, and using borrowed funds for leverage. While hedge fund strategies can be very appealing, they boast a number of barriers to entry. For starters, hedge funds are largely available only to accredited investors and they usually feature steep minimum investment requirement and cumbersome fee structures. Hedge fund ETFs have garnered a lot of interest because they offer exposure to popular hedge fund strategies without any of the qualification requirements or steep fees. Some of the most common strategies from the hedge fund world that are now available in the ETF wrapper include:
- Managed Futures – this entails using futures contracts for taking long and/or short bets across a variety of assets from equity indexes to commodities to currencies.
- Merger Arbitrage – this strategy looks to profit from the spread differential in companies that have announced their acquisition target.
- Relative Value – this refers to a strategy that can span across sectors or countries as it looks to capitalize on the discrepancy between the market price of an asset today and its expected “fair” fundamental value.
Hedge fund ETFs may offer investors potentially uncorrelated sources of returns which can make them very useful in diversified portfolios.
Click on the tabs below to see more information on Hedge Fund ETFs, including historical performance, dividends, holdings, expense ratios, technical indicators, analysts reports and more. Click on an ETF ticker or name to go to its detail page, for in-depth news, financial data and graphs. By default the list is ordered by descending total market capitalization. Note that ETFs are usually tagged by ETF Database analysts as more than one type; for example, an inverse gold ETF may be tagged as “inverse” and as “gold” and as “commodity”.
Note that the table below may include leveraged and inverse ETFs. Include Leveraged and Inverse ETFs
As of 03/22/2023