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Seeking Alpha – The second hedge fund replication ETF from IndexIQ began trading on Tuesday (6/09/09). According to the press release, the IQ Hedge Macro Tracker ETF (MCRO) seeks to deliver risk-adjusted return characteristics similar to macro and emerging-market style hedge funds.
IndexIQ maintains indexes representing seven separate hedge fund strategies. Their first ETF, the IQ Hedge Multi-Strategy Tracker ETF (QAI), was launched on March 25 and is a composite of all seven underlying strategies.
The new MCRO ETF is designed to track two of the underlying strategies: the IQ Hedge Global Macro Beta Index and the IQ Hedge Emerging Markets Beta Index. The allocation to each strategy will change over time using a rules-based methodology.
Reuters – Money managers are flooding the market with exchange-traded funds (ETF) and mutual funds designed to give even the smallest of investors access to hedge fund returns without all the usual restrictions or hefty fees.
IndexIQ Advisors, a start-up firm that seeks to replicate hedge fund performance, on Tuesday launched the index-based IQ Hedge Macro Strategy Tracker ETF, about 75 percent focused on emerging markets and 25 percent on global trends. The offering joins the IQ Hedge Multi-Strategy Tracker ETF, which began trading in March and is up 17 percent.
Seeking Alpha – The innovators were out with guns blasting as they introduced an ETF that acts like a hedge fund. How has it been doing since the March 25 launch?
This new ETF, established by Index IQ analyzes publicly available hedge fund performance data and then tries to replicate returns utilizing ETFs and other liquid trading vehicles. Additionally, it promises to perform as well as a hedge fund without the risk and with low correlation to traditional assets. Another benefit that this ETF could offer to investors is risk reduction because of its low correlation with the stocks and bonds that already dominate an investor’s portfolio.
New York Daily News – The hedge fund industry has a public relations problem these days and you have to be a millionaire to invest in one anyway, but there’s a new fund for more modest investors that can offer similar benefits.
The IQ Hedge Multi-Strategy Tracker Exchange-Traded Fund doesn’t actually invest in hedge funds, but attempts to replicate their performance.
The fund does this by holding other ETFs that own various asset classes, including stocks, bonds, currencies and commodities.
Adam Patti, CEO of IndexIQ, the company behind the new fund, said it even enjoys some advantages over hedge funds, including the ability to sell on a moment’s notice. Hedge funds typically offer limited times to sell.
Financial Standard – US investors can now access a liquid and transparent hedge fund replication strategy after IndexIQ launched the IQ Hedge Multi-Strategy Tracker ETF on the New York Stock Exchange.
The New York based firm’s exchange traded fund (ETF) seeks to replicate the returns of the IQ Hedge Multi-Strategy Index before fees and expenses.
The index holds a range of hedge fund strategies including equity long/short, global macro, market neutral, event driven and fixed income arbitrage.
