ETF Evaluator: Convergence Long/Short Equity ETF () Follow This ETF

Convergence Long/Short Equity ETF Overview

Convergence Long/Short Equity ETF (CLSE) is an actively managed Nontraditional Equity Long-Short Equity exchange-traded fund (ETF). Convergence launched the ETF in 2009.

The investment seeks long-term capital growth. The fund seeks to invest, under normal market conditions, at least 80% of its net assets (plus any borrowings for investment purposes) in long and short positions in equity securities of domestic companies. The adviser intends to maintain a net long exposure (the market value of long positions minus the market value of short positions) of approximately 50% to 100%. Under normal market conditions, the fund’s long positions may range from approximately 90% to 150% and its short positions may range from approximately 20% to 70%.

About Convergence Long/Short Equity ETF (CLSE)

There are 2 members of the management team with an average tenure of 13.48 years: Justin Neuberg (2016) and David Abitz (2009). Management tenure is more important for actively managed ETFs than passive index ETFs.

The ETF has 1 primary benchmark: Bloomberg US 3000 TR USD index with a weighting of 100%. Convergence Long/Short Equity ETF has 365 securities in its portfolio. The top 10 holdings constitute 26.5% of the ETF’s assets. The ETF meets the SEC requirement of being classified as a diversified fund. The ETF is not considered to have an ESG focus with its investment selection and management.

Convergence Long/Short Equity ETF is part of the Equity global asset class and is within the Nontraditional Equity ETF group. Convergence Long/Short Equity ETF has 1.4% of its portfolio invested in foreign issues. The overall assets allocated to domestic stock is 59.6% There is 1.4% allocated to foreign stock, and 0.0% is allocated to preferred stocks. The bond allocation as a percentage of total assets is 0.0% (0.0% domestic bond, 0.0% foreign bond and 0.0% convertible bond). Convergence Long/Short Equity ETF has -1.0% of the portfolio in cash.

Assets Under Management

The fund has $841 million in total assets, which is above the $320 million average for the Long-Short Equity category. Normally, lower assets under management translates to higher average expense ratios, and greater total assets are desired. However, for some investment categories, such as small-cap investing, it may be difficult for the manager to fully employ the desired active strategy if assets grow too large or too quickly.

CLSE Performance and Fees

The expense ratio measures how much of a fund’s assets are used for administrative expenses and operating expenses, including adviser fees and fees for the transfer agent and custodial services. The Convergence Long/Short Equity ETF expense ratio is high compared to funds in the Long-Short Equity category. Convergence Long/Short Equity ETF has an expense ratio of 1.52%, which is 17% lower than its category average, making the fund expense ratio grade a D. While it is difficult to predict returns, it is known that high annual expense ratios reduce your rate of return, and excessive fees are difficult to overcome. Active management normally comes with higher expense ratios than passive index management. Certain investment categories such as small company and foreign also normally have higher expense ratios. It is best to compare fund expense ratios against the category averages for meaningful assessments.

High portfolio turnover can translate to higher expenses and lower aftertax returns. Convergence Long/Short Equity ETF has a portfolio turnover rate of 262%, which indicates that it holds its assets around / 0.0 years. By way of comparison, the average portfolio turnover is 157% for the Long-Short Equity category.

Recently, in the month of July 2026, Convergence Long/Short Equity ETF returned -0.4%, which earned it a grade of C, as the Long-Short Equity category had an average return of -0.0%. The letter grades of A, B, C, D and F are based upon relative rankings within the investment category. A grade of A, for example, would indicate that the return is in the highest 20% for that time period compared to all ETFs in that category.

Convergence Long/Short Equity ETF has a trailing yield of 0.77%, which is below the 1.17% category average. The fund normally distributes its income annually and its capital gains annually.

It’s natural to seek the best-performing investments, but you must consider the relationship between risk and return and the impact of costs and taxes on your realized returns.

Convergence Long/Short Equity ETF Grades

Year to date, the ETF has returned 24.3%, 16.0 percentage points better than the category, which translates into a grade of A. The fund has returned 42.4% over the past year (grade of A), 29.6% over the past three years (grade of A) and 19.4% per year over the past five years (grade of A) and 14.9% per year over the past 10 years (grade of A).

For more ETF grades, analysis and screening tools to help your investment discovery, join AAII for a $2, full-access trial. Learn more here: https://invest.aaii.com/membership.

Otherwise, for more information about Convergence Long/Short Equity ETF, including its riskiness, submit your email to unlock the rest of the article.