The ProShares Hedge Replication ETF is listed on NYSE Arca under the ticker symbol HDG.
According to ProShares, the fund aims to provide the risk/return characteristics of a broad universe of hedge funds without many of the challenges of hedge fund investing, such as illiquidity, limited transparency and high fees. The fund’s benchmark is based on Merrill Lynch’s hedge fund replication model.
“Many portfolios could benefit from the risk/return characteristics of hedge funds, but investors often either can’t or don’t invest in hedge funds because of a variety of challenges,” said Michael L. Sapir, Chairman and CEO of ProShare Advisors LLC, ProShares’ investment adviser, in the announcement. “We are pleased to offer an ETF that addresses challenges of hedge fund investing and may be, for many investors, an attractive alternative to hedge funds.”