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.

Read Complete Article

Tags: beta, emerging-market, emerging-markets, etf, global macro, hedge fund strategies, hedge funds, indexes, iq, march 25, mcro, methodology, press release, qai, replication, risk adjusted return, seeking alpha

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.

Read Complete Article

Tags: benefit, correlation, etf, guns, hedge fund performance, innovators, investor, investors, iq, march 25, nbsp, performance-data, risk reduction, seeking alpha, stocks and bonds, traditional-assets