Advisors and investors increasingly turn to alternatives to bolster and diversify traditional portfolios. Hedge fund strategies offer low correlation complements to stocks and bonds. But high management and entry fees barred many from entry. With a variety of hedge fund replication ETFs on the market, investors can now capture industry strategies with the cost savings of an ETF.
In ongoing market volatility and macro uncertainty, portfolio diversification matters. Hedge fund strategies generally offer reduced correlations to major asset classes while capturing strategies and trends beyond the scope of traditional portfolios. However, the 2/20 fee model as well as high entry fees proved a significant hurdle for many investors. ETFs lower these barriers of entry while capturing hedge fund industry or sector returns.
For those advisors and investors wanting to boost portfolio diversification, the Unlimited HFND Multi-Strategy Return Tracker ETF (HFND ) offers a one-stop-shop approach. The fund provides exposure to the hedge fund industry’s returns with the accessibility of an ETF. By capturing hedge fund returns in an ETF wrapper, HFND offers potential outperformance through its fee savings and tax efficiency. It does not invest directly in hedge funds or attempt to replicate their holdings.
See also: Unlimited’s Elliott on Differentiated Hedge Fund ETFs
The strategy seeks to generate similar returns across a range of hedge fund sectors. These include global macro, managed futures, equity long/short, and more. The fund managers use publicly reported returns and fees for the industry when constructing the portfolio. The portfolio offers similar volatility, returns, and correlations as the hedge fund industry, gross fees. The fund invests primarily in ETFs and futures contracts to achieve its goals.
By investing in HFND, investors can capture hedge fund industry returns while limiting single-manager and manager concentration risk. The ETF generated a 30-day SEC yield of 1.99% as of August 31, 2025, and has management fees of 0.95%.
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