Long-short ETFs are exchange-traded funds that employ a long-short investment strategy, which aims to profit from both rising and falling market conditions. This type of ETF invests in both long positions, where the fund buys securities that it believes will increase in value. Short positions, where the fund sells securities that it believes will decrease in value and aims to profit from the difference.

Long-short ETFs can use different methods to select the securities they invest in, such as fundamental analysis, quantitative analysis, or a combination of both. These ETFs can be more complex than traditional ETFs, and their performance can be more volatile as they are exposed to market risk as well as the risk of using leverage.

They are typically more suitable for experienced investors with a high-risk tolerance and looking for a more active investment strategy. It is important to note that, as these ETFs might use leverage to generate returns, they are considered riskier than traditional ETFs. Therefore, investors should carefully consider the risks before investing.

Long-Short

The Convergence Long/Short Equity ETF is an actively managed U.S. equity strategy that combines long positions in companies considered attractive with short positions in companies considered unattractive using fundamental and quantitative analysis.

Cboe US

CLSE

NYSEArca

FLSP

The Militia Long/Short Equity ETF seeks capital appreciation through a higher turnover, fundamental long-short global stock selection strategy.

NasdaqGM

NYLI Hedge Multi-Strategy Tracker ETF seeks to track the NYLI Hedge Multi-Strategy Index, which is designed to replicate hedge-fund-like risk and return characteristics.

Symbol	Name	Sharpe Ratio (1Y)	Sharpe Ratio (5Y)	Sharpe Ratio (10Y)	Risk / Return Rank
CLSE	Convergence Long/Short Equity ETF	3.30	—	—	96
FLSP	Franklin Liberty Systematic Style Premia ETF	2.07	0.62	—	84
ORR	Militia Long/Short Equity ETF	1.84	—	—	65
HDG	ProShares Hedge Replication	1.81	0.47	0.55	74
QAI	NYLI Hedge Multi-Strategy Tracker ETF	1.79	0.66	0.60	74

Top Long-Short ETFs by Sharpe Ratio

Top Long-Short ETFs by Sharpe Ratio