TipRanks brings you the power of its hedge fund trading activity tool to conduct solid research on your favorite Exchange-Traded Fund (ETF). TipRanks has an ETF hedge fund tool that displays which hedge funds are either pouring money into or shedding a particular ETF. You can track the ETF hedge fund trading activity tool to gain insight into hedge funds’ buying, selling, and holding activities for an ETF in a particular quarter.
Why Follow Hedge Funds?
Hedge Funds are managed by professional portfolio managers who use a wide array of strategies to generate highly desirable returns for investors. An individual investor can do well by investing in ETFs that hedge funds are confident in.
Interestingly, TipRanks accumulates the hedge fund holdings data by scanning their respective 13F filings, and updates the data regularly each quarter. Moreover, based on the hedge fund allocation, TipRanks calculates the Hedge Fund Confidence Signal to describe if hedge funds are Positive, Neutral, or Negative on the fund. The tool will also tell you if overall, hedge funds have increased or decreased their holdings in an ETF in the last quarter.
That’s not all – with the TipRanks’ Star Ranking System, we also rank hedge fund managers based on their overall portfolio performance, success rate, Sharpe ratio, and average return generated in the past. Investors can look at an expert’s ranking before choosing to follow his/her ETF and other stock recommendations. Following the trades of a high-ranking manager could ensure reasonable returns for your portfolio.
How to Find the Hedge Funds Tool
To start, search for the ETF you are researching using the search bar, by entering either the name of the fund or its ticker symbol. The Hedge Funds tool appears on the menu on the left-hand side of the screen.
Working Example of ETF Hedge Funds Tool
SPDR S&P 500 ETF Trust (SPY) is an S&P 500 index (SPX)-tracking ETF. The TipRanks hedge fund trading tool for SPY indicates that hedge funds are currently Neutral on the fund, based on the activity of 75 hedge funds in the last quarter.
What’s more, the tool tells you that hedge funds have increased their holdings in SPY by 1.3 million shares during the last quarter. You can also see the historical quarterly trading activity in the chart to see the pattern of hedge fund trading in the ETF. Also, you can hover your cursor over each quarter in the graph to see the end-of-quarter shares held by hedge fund managers in the ETF, while the line graph shows you the price performance.
List of Hedge Funds
You can also see the list of hedge funds that have traded in the ETF recently. In the SPY example, you can see that five-star hedge fund manager Donald Yacktman-led Yacktman Asset Management LP has added SPY to his fund recently, increasing his holding by roughly 1480%. You can also see that SPY makes up 0.14% of Yacktman’s total portfolio currently.
Further, you can click on each hedge fund manager’s name to research their other holdings. The screenshot below gives further details of the fund manager’s exposure to the ETF, including gain since the last filing, change in holding, the average price of ETF in the last quarter, and change in the percentage of the portfolio.
Now, give it a try and see how the tool effectively guides you in making the right investment choices.
