First US-listed hedge fund ETF celebrates three-year anniversary

Mar 27th, 2012 | By | Category: Alternatives / Multi-Asset

The IQ Hedge Multi-Strategy Tracker ETF (NYSE: QAI), the first US-listed hedge fund replication ETF, celebrated its three-year anniversary on 25 March, 2012. IQ Hedge Multi-Strategy Tracker ETF

First US-listed hedge fund ETF celebrates three-year anniversary

IQ Hedge Multi-Strategy Tracker ETF, the first US-listed hedge fund ETF, has celebrated its three-year anniversary.

“We launched the IQ Hedge Multi-Strategy Tracker ETF in 2009 with the goal of making a whole new asset class available to the average investor,” said Adam Patti, CEO of IndexIQ.

“Before the launch of QAI, hedge fund investing was generally limited to institutions and high net worth individuals. QAI changed all of that. While the concept was novel at the time, QAI has performed as we anticipated over the past three years and has attracted more than $200 million in assets.”

QAI seeks to replicate, before fees and expenses, the returns of the IQ Hedge Multi-Strategy Index and is designed to give investors and their financial advisers access to institutional quality investment strategies in a low cost, fully transparent, and highly liquid vehicle.

The  IQ Hedge Multi-Strategy Index uses multiple hedge fund investment styles, including long/short equity, global macro, market neutral, event-driven, fixed income arbitrage, and emerging markets.

Since its launch, QAI has weathered a period of dramatic stock market volatility, providing a return since inception of 4.82% with a standard deviation of 5.62%.

“During this period of extraordinary turbulence, advisors, investors, institutions, and even other hedge funds have used QAI to maintain exposure to the markets at lower risk as measured by standard deviation,” said Patti. “It has proven to be a highly effective tool for diversifying a wide variety of portfolios.”

In addition to QAI, IndexIQ is also the sponsor of a number of other index-based absolute return ETFs designed to “democratise” the alternative investment landscape, including:

IQ Hedge Macro Tracker ETF (NYSE Arca: MCRO), the first Global Macro ETF

IQ Merger Arbitrage ETF (NYSE Arca: MNA), the first Merger Arbitrage ETF

IQ Real Return ETF (NYSE Arca: CPI), the first multi-asset class “Real Return” ETF, which seeks to generate a real return above the rate of inflation as measured by changes in the Consumer Price Index

“We’re proud to have created one of the most comprehensive families of liquid alternative strategies available in the market today,” continued Patti. “We have continued our quest to identify opportunities for innovation in the liquid alternatives space in the years since we first brought QAI to market.”


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