RYE BROOK, N.Y.--(BUSINESS WIRE)--IndexIQ, a leading developer of liquid alternative investment solutions, has launched two new Exchange-Traded Funds (ETFs): the IQ Hedge Long/Short Tracker ETF (NYSE Arca: QLS) and the IQ Hedge Event-Driven Tracker ETF (NYSE Arca: QED), it was announced today. The funds join IndexIQ’s pioneering family of liquid alternative ETFs, which include the IQ Hedge Macro Tracker ETF (NYSE Arca: MCRO), the IQ Hedge Market Neutral Tracker ETF (NYSE Arca: QMN) and the IQ Hedge Multi-Strategy Tracker ETF (NYSE Arca: QAI), 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).
IndexIQ offers the industry’s most robust family of liquid alternative ETFs, many with over five years of live track record. These include the market-leading global M&A ETF (NYSE Arca: MNA), designed to provide exposure to global merger arbitrage opportunities; the industry’s only hedged natural resources ETF (NYSE Arca: GRES), designed to provide broad commodities exposure with low volatility and low beta to the equity markets; and the first inflation hedge strategy ETF (NYSE Arca: CPI). Additionally, QAI remains the largest liquid alternative ETF in the industry and provides overall core hedge fund industry exposure.
Through IndexIQ’s offerings, investors and advisors now have the opportunity to construct their own diversified hedge fund-style portfolio based on the multiple hedge fund style strategies available from the firm.
“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.
IndexIQ Hedge Fund Replication indexes have a live history going back to March 2007.
NYLIM Transaction Expected to Close Shortly
On December 4, 2014, IndexIQ announced that it would be acquired by New York Life Investment Management (NYLIM), 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.”
IndexIQ Indexes underlie a variety of investment products globally, including ETFs, mutual funds, and institutional accounts. IndexIQ products are designed to be liquid, transparent, low cost,* and accessible to a broad range of investors. Many of IndexIQ’s products have been the first of their kind to be introduced to the market, including:
- 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 Hedge Multi-Strategy Tracker ETF (NYSE Arca: QAI), the first US-listed hedge fund replication ETF;
- IQ Hedge Market Neutral Tracker ETF (NYSE Arca: QMN), providing exposure to the market neutral hedge fund universe;
- IQ Hedge Macro Tracker ETF (NYSE Arca: MCRO), the first Global Macro/Emerging Markets hedge fund replication ETF;
- IQ Merger Arbitrage ETF (NYSE Arca: MNA), the first merger arbitrage ETF;
- 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 U.S. real estate small cap ETF;
- IQ Global Resources ETF (NYSE Arca: GRES), the first hedged global natural resources 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.
IndexIQ is a leading issuer of 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.
The IQ Alpha Hedge Strategy Fund (IQ Fund), the IQ Hedge Multi-Strategy Tracker ETF (QAI), the IQ Hedge Market Neutral Tracker ETF (QMN), the IQ Hedge Macro Tracker ETF (MCRO), the IQ Hedge Long/Short Tracker ETF (QLS), and the IQ Hedge Event-Drive Tracker ETF (QED) 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 QAI, QMN, MCRO, QLS, QED 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. QLS and QED are new and have a limited operating history.
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.