IndexIQ yesterday added to its range of hedge fund strategy exchange-traded funds with what it calls the first market-neutral ETF.
The IQ Hedge Market Neutral Tracker ETF debuted yesterday on NYSEArca, trading under the ticker-symbol QMN. Rye Brook, N.Y.-based IndexIQ said the new fund would use both long and short stock positions to replicate the returns of equity market-neutral hedge funds, seeking to avoid "systematic components" of risk.
"Market-neutral strategies that effectively neutralize the market exposure are not impacted by directional moves in the market," IndexIQ said.
QMN has a 99 basis-point fee ratio. It is IndexIQ's fourth hedge fund ETF.