“You’re getting, essentially, access to high-conviction ideas of really smart guys, but you’re not paying the usual freight to access them,” AlphaClone CEO Maz Jadallah said in a CNBC article. “You’re accessing them in an ETF, which is one of the more fantastic ideas when delivering value to investors.”

Since the ETFs’ holdings are based on numbers from the previous quarter, potential investors should be aware that the ETFs’ positions may become stale in a quickly changing market. Additionally, the ETFs may not perfectly reflect hedge fund positions as many hedge funds utilize derivatives, which are not required to be disclosed. [A Look at a New Guru ETF]

However, the hedge fund clones typically target high conviction positions, or those that hedge fund managers would hold for a while.

“Holding periods tend to be a lot longer than most people think,” Jadallah said. “On average, holding periods for these guys is a year. For high-conviction ideas, it can be much longer than that.”

For more information on the hedge fund strategies, visit our hedge fund category.

Max Chen contributed to this article.