Fund leads next-generation alternative funds in asset gathering;
Growth comes with increasing adoption as a core portfolio holding and as
advisor firms add fund to model portfolios
Company Website:
http://www.indexiq.com
RYE BROOK, N.Y. -- (Business Wire)
The IQ Hedge Multi-Strategy Tracker ETF (NYSE Arca:QAI),
the first hedge fund style ETF and the industry’s largest alternative
exchange-traded fund, topped $500 million in assets, it was announced
today by IndexIQ, the fund’s sponsor, a leading developer of index-based
alternative investment solutions. This represents a growth rate in
excess of 50 percent year to date.
“We are seeing tremendous interest in QAI from the financial advisor
community, who increasingly are using the fund as their core hedge fund
portfolio holding, while QAI also is being added to ETF model portfolios
throughout the industry,” said Adam Patti, IndexIQ’s chief executive
officer. “In many cases, QAI is used to provide the liquid alternatives
allocation in these models, while in other cases, it is viewed as a bond
substitute. Using QAI as a fixed income alternative has resonated
strongly with investors since QAI is designed to seek strong performance
in rising rate environments with a similar volatility profile to the
aggregate bond market, while providing a competitive yield. Since
IndexIQ exceeded $1 billion in assets under management, and as the
firm’s product track-records have surpassed 4 and 5 years, IndexIQ has
experienced a significant increase in asset flows across our lineup,
particularly from the institutional community.”
The liquid alternative category has grown substantially in recent years
with firms such as SEI and McKinsey & Company predicting that billions
of dollars in new assets will flow into these funds over the next
decade. With its broad-based family of liquid alternative ETFs, IndexIQ
believes it is very well positioned to take advantage of this trend,
according to Patti.
“There is no question that investors have been confronted with a series
of extraordinary challenges over the last few years, ranging from the
financial crisis to quantitative easing and the potential impact of Fed
tapering,” said Patti. “We believe our funds help solve a real problem
faced by many investors who want exposure to the markets but are
concerned about volatility and downside risk.”
QAI seeks to track, before fees and expenses, the performance of the IQ
Hedge Multi-Strategy Index. The Index attempts to replicate the
risk-adjusted return characteristics of hedge funds using various hedge
fund investment styles, including long/short equity, global macro,
market neutral, event-driven, fixed income arbitrage and emerging
markets. At launch in March 2009, QAI introduced an entirely new class
of liquid alternative Exchange-Traded Funds, providing investors and
their advisors with access to a hedge fund-like strategy in an ETF, with
all the advantages that fund structure entails –low costs, high
liquidity, and full transparency.
IndexIQ sponsors a family of liquid alternative ETFs, including QAI;
IQ Hedge Macro Tracker ETF(NYSE Arca:MCRO), the first
Global Macro/Emerging Markets hedge fund replication ETF; IQ Hedge
Market Neutral Tracker (NYSE Arca:QMN), designed to provide Market
Neutral hedge fund exposure; IQ Merger Arbitrage ETF (NYSE Arca:MNA),
the first merger arbitrage ETF; and IQ Global Resources ETF (NYSE
Arca:GRES), the first hedged global natural resources ETF.
The IQ Hedge Indexes are used as the basis for investment products
worldwide, and as benchmarks for advisors to determine how well actively
managed hedge funds and alternative mutual funds are performing. The
indexes underlie a variety of investment products in addition to ETFs,
including mutual funds, separately managed accounts, model portfolios,
and institutional accounts.
In addition to the alternative products named above, other IndexIQ funds
include:
- IQ Alpha Hedge Strategy Fund (IQHIX – Institutional Share Class;
IQHOX – Investor Share Class), the first open-end, no-load hedge
fund replication mutual fund;
- IQ Real Return ETF (NYSE Arca:CPI), the first US-listed “real
return” ETF, which seeks to generate a real return above the rate of
inflation as measured by changes in the Consumer Price Index;
- IQ US Real Estate Small Cap ETF (NYSE Arca:ROOF), the first US
Real Estate Small Cap ETF;
- IQ Global Agribusiness Small Cap ETF (NYSE Arca:CROP), the
first agribusiness small cap ETF;
- IQ Global Oil Small Cap ETF (NYSE Arca:IOIL), the first global
oil small cap ETF;
- IQ Canada Small Cap ETF (NYSE Arca:CNDA), the first Canada
small cap ETF; and,
- IQ Australia Small Cap ETF (NYSE Arca:KROO), the first
Australia small cap ETF.
About IndexIQ
IndexIQ is a leading issuer of index-based liquid alternative solutions
focused on absolute return, real asset and international strategies.
IndexIQ solutions are offered as ETFs, Mutual Funds, Separate Accounts
and Model Portfolios. IndexIQ’s philosophy is to democratize investment
management by making innovative alternative investment strategies
available to investors in low cost, liquid and transparent products.*
IndexIQ strategies are marketed through the company’s proprietary
investment products and select partnerships with leading global
financial institutions. Additional information about the company and its
products can be found at www.IndexIQ.com.
*IndexIQ’s ETF holdings are available daily on IndexIQ’s
website. Brokerage commissions apply to ETFs. ETFs are liquid in that
they are exchange-traded.
Index performance does not reflect charges and expenses associated with
the Funds or brokerage commissions associated with buying and selling
ETF shares. One cannot invest directly in an index.
The IQ Alpha Hedge Strategy Fund (IQ Fund), the IQ Hedge Multi-Strategy
Tracker ETF (IQ Multi-Strategy ETF), and the IQ Macro Tracker ETF (IQ
Macro ETF) are not hedge funds and do not invest in hedge funds. The IQ
Alpha Hedge Strategy Fund is a registered open-end mutual fund that
invests in exchange-traded funds (ETFs) and similar securities in an
attempt to replicate the performance characteristics of certain hedge
fund investing styles, but with less cost, more liquidity, and greater
portfolio transparency than traditional hedge funds. There can be no
assurance that the Funds’ investment strategies will be successful. The
investment performance of the IQ Multi-Strategy ETF, the IQ Macro ETF
and the IQ Real Return ETF (collectively, the IQ ETFs), because they are
funds of funds, depends on the investment performance of the underlying
ETFs in which they invest. There is no guarantee that the IQ ETFs
themselves, or each of the underlying ETFs in the Funds’ portfolios,
will perform exactly as its underlying index. The IQ ETFs are
non-diversified and susceptible to greater losses if a single portfolio
investment declines than would a diversified mutual fund. The IQ ETFs’
underlying ETFs invest in: foreign securities, which subject them to
risk of loss not typically associated with domestic markets, such as
currency fluctuations and political uncertainty; commodities markets,
which subject them to greater volatility than investments in traditional
securities, such as stocks and bonds; and fixed income securities, which
subject them to credit risk; the possibility that the issuer of a
security will be unable to make interest payments and/or repay the
principal on its debt; and interest rate risk; changes in the value of a
fixed-income security resulting from changes in interest rates.
Leverage, including borrowing, will cause some of the IQ ETF’s
underlying ETFs to be more volatile than if the underlying ETFs had not
been leveraged.
Investors are reminded that all investing involves risk, including
possible loss of principal. Consider the Funds’ investment objectives,
risks, charges and expenses carefully before investing. A prospectus
with this and other information about the Funds may be obtained by
visiting www.indexiq.com
or by calling (888) 934-0777. Read the prospectus carefully before
investing.
IndexIQ ETFs and mutual funds are distributed by ALPS Distributors,
Inc., which is not affiliated with IndexIQ.
IDX001311.100314
Contacts:
MacMillan Communications
Mike MacMillan/Chris Sullivan,
212-473-4442
chris@macmillancom.com
Source: IndexIQ
© 2024 Canjex Publishing Ltd. All rights reserved.