The appeal of investing like hedge funds is huge for retail investors. Many believe that hedge funds can use unique methods or offer up exposure to lower risk strategies, and thereby produce some level of outperformance.
However, these can be expensive, have huge minimum investments, and may be illiquid as well. Fortunately with the advent of ETFs, investors can easily tap into hedge fund strategies without having to worry about huge costs or high investing minimums (see Invest Like Top Hedge Funds with This Outperforming ETF).
The space has really exploded over the past few years as investor capital has flowed in, and new funds have hit the market. Many have easily crushed broad benchmarks—even in last year’s incredible run—and could be interesting picks for investors who want these types of investments in their portfolios.
Two of our favorites are the AlphaClone Alternative Alpha ETF (ALFA) and the Global X Guru Index ETF (GURU). Both of these have added more than 34% in the past year, easily crushing the S&P 500 for the same time frame (read 7 ETFs to Buy in 2014).
For more on these hedge fund ETFs, and how they have been able to outperform, make sure to watch our short video on the subject below:
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Read the analyst report on GURU
Read the analyst report on ALFA
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- Private Equity & Hedge Funds
- hedge funds