Drilling Down Into the Best-Selling Hedge Fund ETF of 2018

The video discusses a hedge fund ETF that has gained popularity due to its performance and strategy. It explains the merger arbitrage strategy, which involves going long on takeover targets to capture premiums. The video covers the ETF's returns, volatility, and target audience, emphasizing its design for advisors. It details the portfolio composition, hedging ratios, and adjustments made for market conditions. Finally, it compares this ETF with others, highlighting differences in strategy and execution.

What is the primary goal of the merger arbitrage strategy discussed in the video?

• To achieve high returns quickly

• To capture premiums from completed deals

• To invest in high-risk startups

• To diversify across multiple sectors

How does the ETF manage its holdings to hedge against market volatility?

• By focusing solely on technology stocks

• By using short positions to hedge beta

• By investing only in government bonds

• By avoiding any form of hedging

What is the typical net exposure range for the ETF?

• 10% to 30%

• 40% to 60%

• 90% to 100%

• 60% to 80%

What adjustments has the ETF made in response to increased market volatility and regulatory scrutiny?

• It has stopped investing in new deals

• It has increased its long positions to 100%

• It has maintained a robust pipeline for new and completed deals

• It has shifted focus to international markets

Why does the ETF prefer monthly rebalancing over daily rebalancing?

• To avoid immediate market reactions and improve execution

• To focus on short-term gains

• To increase trading volume

• To align with quarterly earnings reports