CLSE vs QAI

CLSEBConvergence Long/Short Equity ETF

QAIANYLI Hedge Multi-Strategy Tracker 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.

QAI The original hedge fund replication ETF, listed in 2009: a fund of roughly 50 exchange-traded products tracking an index built to mimic hedge fund styles, for 0.81% net of a fee waiver (1.03% gross).

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.

QAI The Fund seeks to track the performance of the IQ Hedge Multi-Strategy Index before fees and expenses. It uses passive indexing and invests primarily in exchange-traded products and related financial instruments representing the 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.

• QAI Billed as the first US-listed hedge fund replication ETF when it launched in March 2009, so it carries a record across multiple market cycles rather than a backtest.asiaasset.com
• Costs 0.81% net of a fee waiver (1.03% gross), below the alternatives category median and under IALT's 0.99%.
• Plain plumbing for an exotic idea: it holds exchange-traded products and related instruments to passively track the IQ Hedge Multi-Strategy Index, and trades on an exchange all day.
• Stands near the front of the roughly 30 alternatives funds in its peer group on our review.

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.

• QAI Fund-of-funds design means your exposure runs through other ETFs and the index's mapping of them to hedge fund styles, with gross expenses of 1.03% against the 0.81% net line.
• Cheaper shelves sit nearby: FLSP at 0.65% and HBDC at 0.39%, though neither runs the same multi-strategy replication mandate.
• Moderately traded rather than a category volume leader, and payouts arrive annually or semiannually, so this is not an income-cadence vehicle.

Full CLSE profile⁠

Full QAI profile⁠