CLSE vs QALT

CLSEBConvergence Long/Short Equity ETF

QALTASEI DBi Multi-Strategy Alternative 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.

QALT One ticker, several hedge fund playbooks: SEI stacks sub-advisers running directional, event-driven and arbitrage strategies, and measures itself against 3-month T-bills instead of the S&P 500. It undercuts the typical alternatives fund on fees.

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.

QALT The fund seeks positive absolute returns across market cycles with reduced correlation to stocks and bonds. It pursues this through multiple underlying funds and sub-advisers using directional or tactical, event-driven, and arbitrage approaches.

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.

• QALT Charges 0.80% a year against a 1.07% median for alternatives funds. Multi-manager hedge fund exposure usually bills more than that.
• Not a one-trick fund. Directional or tactical, event-driven and arbitrage sleeves run side by side through several underlying funds and sub-advisers.
• The yardstick is 3-month T-bills, the cash hurdle hedge funds get judged on. The stated aim is positive absolute return with reduced correlation to stocks and bonds.
• Screens near the top of its alternatives peer group, and comes in under pricier multi-strategy options such as HFGM and HDG at 0.95%.

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.

• QALT Launched in 2025, so there is no long record showing how this manager lineup behaves through a full market cycle.
• Trading is thin next to big index ETFs, which can mean wider spreads when you get in or out.
• Not the cheapest seat in the aisle: RNMN (0.59%) and CCEF (0.74%) charge less, though each runs a narrower strategy set than a multi-manager book.

Full CLSE profile⁠

Full QALT profile⁠