Hedge funds increased positions in SPDR S&P 500 ETF Trust (SPY) in Q3, with 35% of the portfolio invested in technology stocks. The ETF has gained 14% in 2025. Meanwhile, Invesco QQQ Trust (QQQ) attracted hedge fund buying with 64% tech sector exposure and 18% year-to-date gains.

Several notable investors, including Tudor Investment Corp and Farallon Capital Management, increased their positions in SPY during the quarter. SPY offers ultimate portfolio diversification and has an average annual rate of return of about 10%.

The Invesco QQQ Trust is tech-focused and has gained 18% this year. Hedge funds like Point72 Asset Management and Citadel Advisors increased their stake in the ETF during the third quarter. QQQ has generated a cumulative 1-year return of 30.65% and a 3-year return of 130%.

Vanguard High Dividend Yield Index Fund ETF, which invests in high-yield dividend stocks, has attracted hedge fund interest in Q3. The ETF has a yield of 2.47% and invests heavily in the financial sector. It has generated a 3-year return of 44.38% and a 5-year return of 105.33%.

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Read more at Yahoo Finance: Hedge Funds Are Loading Up on These 3 ETFs