- As of Nov 4, 2026, ETFIQ places 4 alternatives ETFs in equity market neutral, against 26 in equity hedged, among 90 alternatives ETFs.
In plain words
A market neutral ETF takes long positions in some stocks and short positions in others, sized so the market’s moves cancel out. Its result comes from stock picking, not market direction.
ETFIQ finds only 4 funds here, against 26 equity hedged and 23 trend, so each fund’s own record matters more. Measures are weekly correlation and beta with the S&P 500 over a year. Neutral does not mean no risk: the fund can lose on both sides if its picks are wrong.
Questions
- Is market neutral the same as low risk?
No. It removes market direction, not the risk of poor picks.
- What is beta?
How much a fund moves per unit of S&P 500 move. Near zero means little link.
- Why so few funds?
The strategy is harder to run in an ETF wrapper.