At a glance
CLSE charges 1.52% a year, above the 0.36% average of the 6 funds most like it (the most expensive of 7). It has $900.5M in assets, the 3rd largest of that group; it paid 0.77% of its price in distributions over the past 12 months, annual. Over the past year it returned +27.4% with distributions reinvested (S&P 500: +11.5%), the best of those 7 funds; over three years it returned +29.4% a year. Its ten largest positions make up 29.1% of the fund, out of 353 in all.
The short version
Convergence Long/Short Equity ETF (CLSE) is an actively managed fund. It buys US stocks its adviser expects to beat the market and sells short stocks it expects to lag, while staying 50% to 100% net long. Its cost sets it apart: a 1.52% expense ratio, compared with a 0.36% average for funds with overlapping holdings. Through October 27, 2026, it also had the highest one- and three-year returns in that group.
Price history
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CLSE +27.4% over the year to Oct 27, 2026, total return with distributions reinvested.
How it has behaved
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | Since start | |
|---|---|---|---|---|---|---|
| CLSE official prospectus, to Dec 31, 2025 | — | +20.60% | — | +18.79% | +12.59% | — |
| CLSE price data to Oct 27, 2026 | +22.9% | +27.4% | +29.4% | — | — | +19.6% |
- Over the year to Oct 27, 2026, CLSE returned +27.4%, 1st of 7 among similar funds.
- Its worst full calendar year was 2023 (+17.6%); its best was 2024 (+35.5%).
- The deepest fall in its price history was 16.4% (Jan 23, 2025 to Apr 4, 2025), recovered by Jul 31, 2025.
Show as a table
| Year | Price data | Prospectus (official) |
|---|---|---|
| 2026 (to date) | +22.9% | — |
| 2025 | +20.4% | +20.60% |
| 2024 | +35.5% | +35.36% |
| 2023 | +17.6% | +17.51% |
| 2022 | — | -7.24% |
| 2021 | — | +32.93% |
| 2020 | — | -6.87% |
| 2019 | — | +14.40% |
| 2018 | — | -1.92% |
| 2017 | — | +17.79% |
| 2016 | — | +12.39% |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Before this security existed |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Not in the price data, which starts Feb 23, 2022 |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Not in the price data, which starts Feb 23, 2022 |
Dividends and income
Show as a table
| Year | Per share | Change |
|---|---|---|
| 2025 | $0.2600 | +23.8% |
| 2024 | $0.2100 | 0.0% |
| 2023 | $0.2100 |
What's inside
As of Aug 31, 2026, the fund held 353 securities; the ten largest made up 29.07% of assets.
| Holding | Weight | |
|---|---|---|
| NVIDIA Corp | 6.18% | |
| Broadcom Inc | 3.51% | |
| Amazon.com Inc | 3.16% | |
| Alphabet Inc | 3.07% | |
| Micron Technology Inc | 3.02% | |
| Alphabet Inc | 2.62% | |
| Apple Inc | 2.11% | |
| Sandisk Corp | 1.88% | |
| Fortinet Inc | 1.77% | |
| Advanced Micro Devices Inc | 1.75% | |
| Lam Research Corp | 1.65% | |
| Dell Technologies Inc | 1.55% | |
| Microsoft Corp | 1.40% | |
| Reddit Inc | 1.36% | |
| Manhattan Associates Inc | 1.35% |
By country
United States 59.78%Ireland 0.92%Puerto Rico 0.63%France 0.36%Luxembourg 0.29%By asset type
Stocks 60.01%By sector
Sectors of the companies held, for the 74.9% of the fund in companies that have a stock page here; other holdings and cash aren't classified. Source: N-PORT holdings report as of Aug 31, 2026. Cash, money-market funds and derivatives are shown separately from the securities list.What changed recently
- Over the three months to Aug 31, 2026, investors added a net $292.9M (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: +1.16%, -0.44%, -1.22%.
How it works
Convergence Long/Short Equity ETF follows no index. Its adviser, Convergence Investment Partners, picks stocks itself, aiming for long-term growth. At least 80% of net assets go into long and short positions in US companies, mostly medium and large ones. A long position is a stock the fund owns, betting it will rise. A short position is the reverse: the fund borrows shares and sells them, hoping to buy them back cheaper. If the price climbs instead, losses have no ceiling.
A proprietary ranking system, blending computer screens with traditional company analysis, drives most decisions. It scores stocks on valuation (price against earnings, cash flow and revenue), growth, momentum (price and business trends) and quality (steady earnings, strong balance sheets, healthy margins). Top-ranked stocks are bought; poorly ranked ones are shorted.
Long positions may total about 90% to 150% of total assets and shorts about 20% to 70%. Net exposure (longs minus shorts) is meant to stay between about 50% and 100%, so the fund still rises and falls with the market, though often by less. Trading is heavy: the prospectus reports turnover of 262%, and trading costs come on top of the expense ratio. As of August 31, 2026, the fund held 353 holdings, led by NVIDIA (6.2% of net assets), Broadcom (3.5%) and Amazon (3.2%).
What it really costs
- CLSE charges 1.52% a year, versus an average of 0.36% for the similar funds below (7th of 7, cheapest first).
- Of that, 0.95% is the management fee; the rest covers other fund expenses.
- Using the prospectus's standard example, $10,000 invested would cost about $155 in the first year and $1,813 over 10 years (assuming a 5% annual return).
| Cost of $10,000 (SEC example) | 1 yr | 3 yrs | 5 yrs | 10 yrs |
|---|---|---|---|---|
| CLSE | $155 | $480 | $829 | $1,813 |
In a retirement portfolio
It is an actively managed, high-cost stock fund that uses short sales and leans on technology, so it fits better as a small add-on than as a foundation.
CLSE launched in December 2009, after the 2008 crisis. Its market-price history here starts in February 2022. The prospectus fills in more: the fund lost 6.87% in 2020 and 7.24% in 2022, its two worst calendar years from 2016 through 2025. It also fell 18.08% in the first quarter of 2020. Its deepest drop in the price history was 16.4%, from January 23 to April 4, 2025, and it recovered by July 31, 2025, about four months later. Anyone forced to sell shares during that spring would have locked in losses. Income is small: the trailing yield was 0.77% as of October 27, 2026, paid once a year. Costs add up too. In the SEC's standard $10,000 example, expenses come to $1,813 over 10 years. Past results don't predict future ones, and a plan should look at the whole portfolio, not one fund.
Who it may suit — and who should look elsewhere
May suit
- Investors who want mostly-long US stock exposure with built-in short positions, kept within a 50% to 100% net long range.
- Those willing to pay 1.52% a year for a quantitative stock-ranking approach that led overlapping funds on one- and three-year returns through October 27, 2026.
- Investors filling a small satellite slot who accept heavy technology exposure, led by NVIDIA, Broadcom and Amazon as of August 31, 2026.
Look elsewhere if
- Cost-focused investors: funds with overlapping holdings averaged a 0.36% expense ratio, and iShares Russell Top 200 ETF (IWL) charges 0.15%.
- Anyone who needs regular income: the trailing yield was 0.77% as of October 27, 2026, and the fund pays only once a year.
- Investors uneasy with short selling, where losses can in theory be unlimited, or with frequent trading shown by 262% portfolio turnover.
Close alternatives
Matched by holdings overlap from the latest N-PORT reports.
| Fund | Overlap | Cost | Net assets | 1 yr | 3 yr |
|---|---|---|---|---|---|
| CLSE this fund | — | 1.52% | $900.5M | +27.4% | +29.4% |
| QLC FlexShares US Quality Large Cap Index Fund | 40% | 0.25% | $1.01B | +15.1% | +27.0% |
| FYEE Fidelity Yield Enhanced Equity ETF | 38% | 0.28% | $218.3M | +15.1% | — |
| AFLG First Trust Active Factor Large Cap ETF | 35% | 0.55% | $761.1M | +14.8% | +24.7% |
| OALC OneAscent Large Cap Core ETF | 31% | 0.49% | $263.9M | +16.9% | +24.8% |
| IWL iShares Russell Top 200 ETF | 30% | 0.15% | $2.19B | +12.5% | +25.5% |
| CSM Proshares Large Cap Core Plus | 26% | 0.45% | $526.7M | +12.3% | +24.5% |
Questions investors ask
What is CLSE ETF?
CLSE is the Convergence Long/Short Equity ETF, an actively managed fund from Convergence Investment Partners. It buys US stocks its ranking system scores highly and sells short stocks it expects to lag. It keeps net long exposure of about 50% to 100% of assets. As of August 31, 2026, it held 353 holdings with $900 million in net assets. NVIDIA, Broadcom and Amazon were its largest holdings.
Why is CLSE's expense ratio so high?
CLSE charges 1.52% a year, according to its March 2026 prospectus. That includes a 0.95% management fee, and the rest covers other fund expenses. Funds with overlapping holdings averaged 0.36%, and CLSE ranked last of seven on cost. In the SEC's standard example, $10,000 earning 5% a year would pay about $155 in costs after one year and $1,813 after ten.
How did CLSE do in 2022 and 2020?
It lost money in both years: 7.24% in 2022 and 6.87% in 2020, based on prospectus figures. Those were its two worst calendar years from 2016 through 2025. Its worst quarter was the first quarter of 2020, when it fell 18.08%. Its deepest drop in market-price history since February 2022 was 16.4%, from January to April 2025. It recovered in about four months.
CLSE vs QLC: what's the difference?
CLSE is actively managed and uses short sales. FlexShares US Quality Large Cap Index Fund (QLC) follows an index, as its name says, and costs 0.25% a year against CLSE's 1.52%. Their holdings overlap by about 40%. As of October 27, 2026, CLSE returned 27.4% over one year and 29.4% a year over three years. QLC returned 15.1% and 27%. CLSE's lead came with much higher costs and short-selling risk.
Does CLSE pay a dividend?
Yes, but it's small and paid once a year. As of October 27, 2026, the trailing 12-month payout was about $0.26 per share, a yield of 0.77%. The fund's stated objective is long-term capital growth, not income. Most of what it has returned has come from price changes, not distributions. Investors who need a steady paycheck from a holding may find the income too small.