ETF Spotlight on ProShares Hedge Replication ETF (NYSEArca: HDG), part of an ongoing series.
Assets: $21.6 million.
Objective: The ProShares Hedge Replication ETF tries to reflect the performance of the Merrill Lynch Factor Model, which mimics the risk and return characteristics of the HFRI Fund Weighted Composite Index.
The hedge fund benchmark’s performance is determined by taking long- or short-positions in six component factors.
Holdings: As of Oct. 3, the index held exposure to the 6 components: S&P 500 Total Return Index 4.8%, MSCI EAFE US Dollar Net Total Return Index 15.0%, MSCI Emerging Markets US Dollar Net Total Return Index 10.5%, Russell 2000 Total Return Index 4.2%, three-month U.S. Treasury bills 62.7% and the ProShares UltraShort Euro ETF (NYSEArca: EUO) 2.9%.