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.

Symbol	Name	Sharpe Ratio (1Y)	Sharpe Ratio (5Y)	Sharpe Ratio (10Y)	Risk / Return Rank
CLSE	Convergence Long/Short Equity ETF	3.55	—	—	96
QAI	IQ Hedge Multi-Strategy Tracker ETF	2.35	0.68	0.64	86
HDG	ProShares Hedge Replication	2.17	0.42	0.59	79
LSEQ	Harbor Long-Short Equity ETF	2.01	—	—	75
HTUS	Hull Tactical US ETF	1.91	0.77	0.57	70

Top Long-Short ETFs by Sharpe Ratio

Top Long-Short ETFs by Sharpe Ratio