In this video I go over 3 hedge fund ETFs to invest like the rich do.
// TIMESTAMPS:
00:00 - Intro - Hedge Fund ETFs
00:33 - RPAR Risk Parity ETF
01:18 - QAI - IQ Hedge Multi-Strategy Tracker ETF
01:54 - MNA - IQ Merger Arbitrage ETF
02:41 - Should You Invest Like a Hedge Fund?
// SUMMARY:
Hedge funds are considered an “alternative” investment, thus these hedge fund ETFs are classified as “alternative ETFs,” also colloquially known as “liquid alts” due to their greater tradability compared to hedge funds.
Methodologies among hedge fund ETFs vary; some funds seek to track indexes that replicate hedge fund returns, some seek to copy actual holdings that are reported by hedge funds quarterly, and others simply use an overarching hedge-fund-like strategy like long/short, market-neutral, currency-carry, merger arbitrage, etc.
First is RPAR, the RPAR Risk Parity ETF.
RPAR from Toroso Investments is far and away the most popular fund of this type with over $1 billion in assets. For all intents and purposes, it is basically the famous All Weather Portfolio in a single ETF.
Next is QAI, the IQ Hedge Multi-Strategy Tracker ETF.
QAI from New York Life is a fund-of-funds that covers multiple hedge fund return sub-indexes, thereby attaining exposure to a myriad of hedge fund trading strategies: global macro, long/short, fixed income arbitrage, market neutral, event-driven, and Emerging Markets.
Last is MNA, the IQ Merger Arbitrage ETF.
MNA is also from New York Life and is only slightly behind QAI in popularity with nearly $700 million AUM. This fund uses what's called a “merger arbitrage” strategy, buying companies that have been announced as targets for acquisition or takeover.
But should you invest like a hedge fund? Probably not. I explain why in this video: • Should You Invest Like...
Read the blog post here: www.optimizedportfolio.com/he...
#hedgefund #hedgefunds #etfs
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Disclaimer: This is not financial advice, investing advice, or tax advice. The information presented is for informational, educational, and entertainment purposes only. Investment products discussed are for illustrative purposes only. It is not a recommendation to buy, sell, or otherwise transact in any of the products mentioned. I always attempt to ensure the accuracy of information presented but that accuracy cannot be guaranteed. Do your own due diligence. All investing involves risk, including the risk of losing the money you invest. Past performance does not guarantee future results. Opinions are my own and do not represent those of other parties mentioned. Read my lengthier disclaimer here: www.optimizedportfolio.com/te...
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