Gimmicky ETFs that attempt to mimic hedge fund managers' best stock picks, should be taken more seriously, Barrons' Brendan Conway writes. These ETFs are beating the S&P 500 and doing much better than hedge fund returns, with Global X [profile] Top Guru Holdings Index ETF rising 27 percent year to date, Conway reports. The fund "uses a proprietary methodology to compile the highest conviction ideas from a select pool of hedge funds…", Global X's website says. The ETF rose 163 percent of the S&P 500's good days and experiencing 76 percent of a loss on its down days, Conway writes.

AlphaClone Alternative Alpha ETF is ahead 21 percent year to date and rose 116 percent of S&P 500's good days but fell 169 percent during its bad days, Conway explains. In contrast to the S&P 500's rise of 18 percent through Wednesday, HFRI Equity Hedge Total Index, a hedge fund benchmark, rose 7.68 percent through July, Conway reports.

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Edited by: Casey Quinlan


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