Unlimited Expands ETF Lineup with New Global Macro Hedge Fund Strategy
MWN-AI** Summary
Unlimited has announced the launch of its new actively managed exchange-traded fund, the Unlimited HFGM Global Macro ETF (NYSE: HFGM), aimed at providing investors with exposure to global macro hedge fund strategies. CEO and CIO Bob Elliott emphasized that the fund will leverage his extensive experience as a systematic global macro portfolio manager to dynamically allocate capital both long and short across various global markets in search of pricing inefficiencies.
HFGM's strategy focuses on identifying mispricing opportunities in currency, fixed income, equity, credit, and foreign exchange markets. By employing liquid exchange-listed futures contracts and a selection of ETFs based on systematic signals, the fund aims to adjust its positions according to evolving market conditions, facilitating diversification for investors' portfolios.
With a goal of delivering hedge-fund style returns at a lower cost, HFGM offers a transparent, liquid, and cost-effective alternative to traditional hedge fund investments, effectively lowering the expense ratio compared to the typical "2 and 20" fee model. This ETF expands Unlimited's existing lineup, which includes the Unlimited HFND Multi-Strategy Return Tracker ETF (NYSE: HFND).
Elliott noted that the launch of HFGM addresses the growing demand from financial advisors and institutional investors for diversification solutions in an increasingly volatile market environment, removing the barriers and inefficiencies associated with traditional alternative investments.
Looking ahead, Unlimited is set to roll out two additional actively managed ETFs later in the year — the Unlimited HFMF Managed Futures ETF and the Unlimited HFEQ Equity Long/Short ETF, further broadening its offerings. The fund is managed by Elliott and Chief Data Scientist Bruce McNevin, both of whom bring significant quantitative and investment experience to the table.
MWN-AI** Analysis
The launch of the Unlimited HFGM Global Macro ETF (NYSE: HFGM) marks a significant expansion in Unlimited's ETF offerings, utilizing Bob Elliott's expertise in systematically managing global macro strategies. Investors are increasingly seeking diversification in a volatile market environment, and HFGM provides a compelling option, targeting mispricing across currencies, fixed income, equity, and credit markets. Unlike traditional hedge funds that often entail hefty fee structures and tax inefficiencies, HFGM aims to deliver hedge fund-style returns at a lower cost, making it an appealing choice for retail and institutional investors alike.
As a newly launched actively managed ETF, HFGM utilizes liquid exchange-listed futures contracts and ETFs driven by systematic signals, adapting its portfolio based on real-time market conditions. This adaptability is vital in navigating today's turbulent economic landscape, characterized by unpredictable interest rate shifts and geopolitical tensions. The historical performance of global macro strategies in generating alpha with low correlation to traditional markets underscores the potential for HFGM to enhance portfolio diversification.
However, investors should approach HFGM with caution, considering it carries inherent risks associated with its active management style, including potential management missteps and reliance on quantitative models, which could yield unexpected results. Additionally, the ETF’s exposure to emerging markets and derivatives may further amplify volatility, which could deter more conservative investors.
Overall, HFGM represents a strategic entry point for those looking to leverage global macroeconomic trends without the burdensome costs typically associated with hedge fund investments. Its transparent, liquid structure may serve as an advantageous alternative, allowing investors to strategically position themselves for both bullish and bearish market movements. As additional actively managed ETFs from Unlimited are set to launch, investors may want to consider the long-term diversification benefits HFGM and its successors could bring to a well-rounded portfolio.
**MWN-AI Summary and Analysis is based on asking OpenAI to summarize and analyze this news release.
NEW YORK, April 15, 2025 (GLOBE NEWSWIRE) -- Bob Elliott, CEO and CIO of Unlimited , today announced the launch of the Unlimited HFGM Global Macro ETF (NYSE: HFGM) , a new actively managed exchange-traded fund offering exposure to global macro hedge fund style strategies. The Fund capitalizes on Mr. Elliott’s extensive experience as a systematic global macro portfolio manager by dynamically allocating capital long and short across a wide range of global markets opportunities in search of mispricing. The fund utilizes liquid exchange-listed futures contracts, and a basket of ETFs based upon systematic signals. The positions are adjusted based on evolving market conditions with the goal of adding diversification benefits to investors’ portfolios.
HFGM seeks to capitalize on global market mispricing opportunities spanning currency, fixed income, equity, credit and exchange rate markets. Global macro managers have a long track record of generating consistent alpha with low correlation to the broader equity and fixed income markets. HFGM deploys Unlimited’s proprietary, data-driven technology to interpret the current positioning of global macro managers and replicate those positions in its own portfolio.
The launch of HFGM expands on Unlimited’s mission to provide investors with access to hedge fund-style returns without the high fees and tax inefficiencies that can erode performance over time. Unlimited’s ETF offering includes the Unlimited HFND Multi-Strategy Return Tracker ETF (NYSE: HFND), which has a two-year track record of offering investors exposure to a broad set of hedge fund style strategies.
“Financial advisors and institutional investors facing turbulent markets are looking for ways to diversify their portfolios, but many find the high fees, lack of liquidity and adverse tax treatment associated with traditional alts offerings untenable," said Mr. Elliott. "Our Global Macro ETF was designed to offer a volatility target aligned with equity markets as an investor-friendly way to add the diversification features of alts to a balanced portfolio.”
Hedge fund strategies overall have historically generated strong uncorrelated returns for investors, but high fees combined with inefficient tax structures have significantly eroded that performance.
HFGM offers a transparent, liquid, and cost-effective alternative to traditional hedge fund allocations, carrying a lower expense ratio than the standard "2 and 20" hedge fund fee model.
HFGM is the first of several new actively managed ETFs the firm plans to launch over the coming months. The suite includes two additional strategies that have been approved by the Securities and Exchange Commission with launch plans in the works for later this year, Unlimited HFMF Managed Futures ETF and Unlimited HFEQ Equity Long/Short ETF .
Unlimited’s ETFs are managed by Mr. Elliott, former investment committee member at Bridgewater Associates and Bruce McNevin, co-founder and Chief Data Scientist at Unlimited. Mr. McNevin brings extensive experience in quantitative modeling and data science, having held positions at hedge funds Clinton Group and Midway Group, as well as Bank of America and BlackRock.
For more information on HFGM or HFND, please visit https://www.unlimitedetfs.com
Media Contacts:
| Sarah Lazarus | Zach Kouwe |
| Dukas Linden Public Relations | Dukas Linden Public Relations |
| +1 617-335-7823 | +1 551-655-4032 |
| sarah@dlpr.com | zkouwe@dlpr.com |
Before investing you should carefully consider the Fund’s investment objectives, risks, charges and expenses. This and other information is in the prospectus. A prospectus may be obtained by visiting www.unlimitedetfs.com . Please read the prospectus carefully before you invest.
Important Risks
Underlying ETFs Risks. The Fund will incur higher and duplicative expenses because it invests in Underlying ETFs. There is also the risk that the Fund may suffer losses due to the investment practices of the Underlying ETFs. The Fund will be subject to substantially the same risks as those associated with the direct ownership of securities held by the Underlying .ETFs.
Management Risk. The Fund is actively managed and may not meet its investment objective based on the Sub-Adviser’s success or failure to implement investment strategies for the Fund.
Machine Learning, Model and Data Risk. The Fund relies heavily on proprietary “machine learning” selection processes. In addition, the composition of the Fund’s portfolio is heavily dependent on proprietary quantitative models as well as information and data supplied by third parties (“Models and Data”).
Volatility Risk. The Fund seeks to achieve a higher level of volatility than its target hedge fund industry sector, which may result in substantial price fluctuations over short periods. As a result, the value of the Fund’s investments may rise or fall significantly, and investors should be prepared for increased levels of volatility compared to traditional equity funds.
Commodity Risk. Underlying ETFs that invest in the commodities markets may be subject to greater volatility than investments in traditional securities.
Derivatives Risk. The Fund’s or an Underlying ETF’s derivative investments have risks, including the imperfect correlation between the value of such instruments and the underlying assets or index; the loss of principal, including the potential loss of amounts greater than the initial amount invested in the derivative instrument; the possible default of the other party to the transaction; and illiquidity of the derivative investments.
Emerging Markets Risk. The Fund may invest in Underlying ETFs that invest in securities issued by companies domiciled or headquartered in emerging market nations. Investments in securities traded in developing or emerging markets, or that provide exposure to such securities or markets, can involve additional risks relating to political, economic, currency, or regulatory conditions not associated with investments in U.S. securities and investments in more developed international markets.
Fixed Income Securities Risk. The Fund may invest in Underlying ETFs that invest in fixed income securities. The prices of fixed income securities may be affected by changes in interest rates, the creditworthiness and financial strength of the issuer and other factors. An increase in prevailing interest rates typically causes the value of existing fixed income securities to fall and often has a greater impact on longer-duration and/or higher quality fixed income securities.
Foreign Securities Risk. Foreign securities held by Underlying ETFs in which the Fund invests involve certain risks not involved in domestic investments and may experience more rapid and extreme changes in value than investments in securities of U.S. companies.
Futures Contracts Risk. The Fund or Underlying ETFs may invest in futures contracts. Risks of futures contracts include: (i) an imperfect correlation between the value of the futures contract and the underlying asset; (ii) possible lack of a liquid secondary market; (iii) the inability to close a futures contract when desired; (iv) losses caused by unanticipated market movements, which may be unlimited; (v) an obligation for the Fund or an Underlying ETF, as applicable, to make daily cash payments to maintain its required margin, particularly at times when the Fund or Underlying ETF may have insufficient cash; and (vi) unfavorable execution prices from rapid selling.
New Fund Risk. The Fund is a recently organized management investment company with no operating history. As a result, prospective investors do not have a track record or history on which to base their investment decisions.
Short Selling Risk. The Fund may make short sales of securities of Underlying ETFs, which involves selling a security it does not own in anticipation that the price of the security will decline. Short sales may involve substantial risk and leverage. Short sales expose the Fund to the risk that it will be required to buy (“cover”) the security sold short when the security has appreciated in value or is unavailable, thus resulting in a loss to the Fund. Short sales also involve the risk that losses may exceed the amount invested and may be unlimited.
Swap Agreement Risk. The Fund or an Underlying ETF may invest in swap agreements. Swap agreements could result in losses if the underlying asset or reference does not perform as anticipated. Swaps can have the potential for unlimited losses. They are also subject to counterparty risk. If the counterparty fails to meet its obligations, the Fund (or the Underlying Fund) may lose money.
Definitions:
20 and 2 strategy: Describes the standard fee structure charged by advisers of private funds, which generally includes a 2% asset-based management fee, in addition to a 20% performance fee charged on the profits on investments.
Distributed by Foreside Fund Services, LLC.
FAQ**
How does the strategy of the Unlimited HFND Multi-Strategy Return Tracker ETF HFND complement the actively managed approach of the Unlimited HFGM Global Macro ETF in terms of asset allocation and risk management?
Given the growing interest in hedge fund-style investments, what differentiates the Unlimited HFGM Global Macro ETF from traditional hedge funds and how does the Unlimited HFND Multi-Strategy Return Tracker ETF HFND fit into that comparison?
Can you elaborate on the potential risks associated with relying on machine learning and proprietary quantitative models in the Unlimited HFGM Global Macro ETF, particularly in contrast to the investment practices employed by the Unlimited HFND Multi-Strategy Return Tracker ETF HFND?
What are the expected benefits and potential challenges investors might face when integrating the Unlimited HFGM Global Macro ETF and Unlimited HFND Multi-Strategy Return Tracker ETF HFND into a diversified portfolio, especially during volatile market conditions?
**MWN-AI FAQ is based on asking OpenAI questions about Unlimited HFND Multi Strategy Return Tracker ETF (NYSE: HFND).
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