ALFA’s underlying index selects stocks from managers with the highest ranking, or “Clone Score.” Additionally, the index can vary from long only positions and market hedged based on rules-driven relative price targets. Holdings are also rebalanced quarterly. [ETFs a Better Way to Hedge Fund Investing]

Earlier this year, ALFA landed a the prestigious five-star rating from Morningstar. ALFA, the first ETF to track hedge fund equity positions, was rated against 25 Large Cap Growth ETFs for its overall risk-adjusted performance over the three-year period ending May 31, 2015, according to a statement.

“The ETF’s asset allocation method allows a stock to get double, triple or even quintuple weighting if several managers hold it,” according to IBD.

AlphaClone Alternative Alpha ETF