CLSE vs HBDC

CLSEBConvergence Long/Short Equity ETF

HBDCAHilton BDC Corporate Bond ETF

In short

CLSE A hedge-fund playbook in an ETF wrapper: Convergence buys the US mid- and large-caps it expects to outperform and shorts the ones it expects to lag, running a strategy that dates back to 2009.

HBDC Private credit's lenders have to borrow too. HBDC owns the senior unsecured bonds that business development companies issue, a first-mover take on BDC debt instead of BDC stock, wrapped in a rules-based index.

Stated mandate

CLSE The Fund seeks long-term capital growth through an actively managed portfolio of long and short positions in domestic companies’ equity securities. It generally favors medium- and large-capitalization companies, buying securities expected to outperform and shorting those expected to underperform.

HBDC The Fund seeks to track, before fees and expenses, the Solactive Hilton Capital BDC Corporate Bond TR Index.

Why people hold it

• CLSE Works both sides of the market: long the names it expects to outperform, short the ones it expects to lag, all inside a standard 1940 Act fund.
• The strategy dates to 2009, so it is a seasoned book rather than a freshly launched idea.
• Roughly 400 domestic positions across medium and large caps, so no single stock pick decides the outcome.
• Assets run into the hundreds of millions and shares change hands regularly, so entering and exiting is generally straightforward.

• HBDC At 0.39% it undercuts the typical alternatives fund (cohort median near 1.01%) and peers like QAI at 0.75% and FTLS at 0.95%.
• First fund built only around BDC bonds, and it sits above the equity: senior unsecured debt from issuers required by law to keep 150% asset coverage.hiltoncapitalmanagement.comhiltonetfs.com
• Plumbing is plain: a Solactive index rebalanced quarterly with credit and liquidity screens, and the fund seeks to pay monthly.hiltonetfs.com

Worth knowing

• CLSE Pricey by ETF standards at 1.52% a year, against 0.12% for DFAU and 0.15% for AVLC. Shorting and active stock selection carry a real price tag.
• Shorts cut both ways: the sleeve meant to cushion a selloff can also weigh on results when the market climbs.
• Payouts land annually or semiannually. The stated mandate is long-term capital growth, not a steady income stream.

• HBDC Non-diversified by design. The BDC bond universe is small, so one issuer's credit trouble carries more weight here than in a broad corporate bond fund.hiltonetfs.com
• Thinly traded, so spreads can run wider than in mainstream bond ETFs.
• Launched in 2025, meaning the record is short and has not yet spanned a full credit cycle.

Full CLSE profile⁠

Full HBDC profile⁠