IndexIQ Adds Two Liquid Alts Funds To Lineup

Mar 24 2015 | 9:52am ET

IndexIQ has launched two new exchange-traded funds: the IQ Hedge Long/Short Tracker ETF (NYSE Arca: QLS) and the IQ Hedge Event-Driven Tracker ETF (NYSE Arca: QED).

The funds join IndexIQ’s family of liquid alternative ETFs, which include the IQ Hedge Macro Tracker ETF, the IQ Hedge Market Neutral Tracker ETF and the IQ Hedge Multi-Strategy Tracker ETF, which surpassed $1 billion in assets earlier this year.

With the addition of QED and QLS to its family of liquid alternative hedge fund replication vehicles, IndexIQ now offers an ETF designed to track each of the four major hedge fund categories (event-driven, equity hedge or long/short, market neutral and global macro). 

“By managing the weightings of the strategies we offer, an investor or advisor can create a portfolio with a wide range of risk-return characteristics, from conservative to moderate to aggressive,” said Adam Patti, chief executive officer at IndexIQ. “That kind of flexibility in building a customized liquid alternatives portfolio has never before been available to investors of all types and sizes, and we are thrilled to be leading the way in bringing additional institutional-quality strategies and exposures to the broad investor universe.”
   
The IQ Hedge Event-Driven Tracker ETF seeks to replicate, before fees and expenses, the risk-adjusted return characteristics of the IQ Hedge Event-Driven Index.  The Index is intended to capture the collective returns of hedge funds using an event-driven investment style. Event-driven hedge fund managers typically invest in a combination of credit opportunities, such as high yield, leveraged loans, and capital structure arbitrage, and event-driven equities, such as risk arbitrage, holding company arbitrage, and special situations, which can include companies under pressure from activist investors.
 
The IQ Hedge Long/Short Tracker ETF attempts to replicate, before fees and expenses, the risk-adjusted return characteristics of the IQ Hedge Long/Short Index. The Index seeks to mirror the collective returns of hedge funds using a long/short equity investment style. Long/short equity hedge fund managers typically invest on both long and short sides of equity markets and diversify their risks by limiting the net exposure to particular sectors, regions or market capitalizations and focusing on company specific anomalies.

On December 4, 2014, IndexIQ announced that it would be acquired by New York Life Investment Management, bringing together NYLIM’s powerful global asset management franchise and distribution platform with IndexIQ’s proven ability to launch sophisticated alternative ETF products. The transaction is expected to close next month.
   
“We’re very excited to be launching these new funds just as we are about to embark on the next chapter in the history of IndexIQ,” added Patti. “NYLIM brings world-class expertise and distribution capabilities to bear for all of the managers with which it works, and we couldn’t be more pleased to be adding to our offerings and starting our relationship with fantastic momentum.”


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