HFEQ vs QALT

HFEQBUnlimited HFEQ Equity Long/Short ETF

QALTASEI DBi Multi-Strategy Alternative ETF

In short

HFEQ Hedge fund replication, sliced thin. HFEQ assembles a long/short equity book from broad ETFs and futures to mirror the gross-of-fees returns of the hedge fund industry's equity long/short sector, dialed to roughly twice that sector's volatility, for 0.96% a year.

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

HFEQ The Fund seeks capital appreciation through an actively managed equity long/short strategy. It uses long and short positions in broad-based ETFs and futures contracts, and may also use individual equities and swaps to approximate the Equity Long/Short sector's returns with higher volatility.

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

• HFEQ Charges 0.96%, below the typical alternatives fund and under iShares' systematic alternatives ETF (IALT, 0.99%), with no fee waiver propping up the number.
• Exposure comes mainly from broad-based ETFs and futures, with room for single stocks and swaps, keeping the long/short book in liquid, daily-priced instruments.
• The volatility dial is the point: futures scale the book toward roughly twice the equity long/short sector's volatility, amplifying that sector's moves in both directions.sec.gov
• Unlimited's engine reads hedge funds' actual return streams rather than delayed public filings, and HFEQ isolates one sector of that lineup instead of blending them all.yahoo.comsec.gov

• 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

• HFEQ Young and lightly traded since its July 2025 launch, so spreads can widen and limit orders earn their keep.
• Double volatility cuts both ways: the same scaling that magnifies the sector's gains magnifies its drawdowns.sec.gov
• This is an approximation, not the hedge funds themselves, and the portfolio's path can drift from the sector it models.

• 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 HFEQ profile⁠

Full QALT profile⁠