IndexIQ, a leading developer of liquid index-based alternative investment solutions, is launching the newest addition to its Exchange-Traded Fund family, the IQ Hedge Market Neutral Tracker ETF (QMN), on October 4, 2012, it was announced today. QMN is designed to offer investors liquid, transparent Market Neutral hedge fund exposure.
QMN will seek to track, before fees and expenses, the performance characteristics of the IQ Hedge Market Neutral Index (IQHGMN), part of IndexIQ’s proprietary IQ Hedge family of benchmark hedge fund replication indexes. The IQ Market Neutral Index (IQHGMN) has live performance dating from September 2008.
“Market Neutral is one of the largest hedge fund investment styles, both in terms of the number of funds and in the amount of assets being put to work,” said Adam Patti, IndexIQ CEO. “After incubating the index underlying QMN for four years, we felt it was an excellent time to roll out this strategy, particularly given the volatility and uncertainty inherent in today’s market environment. As we add QMN to our fund family, IndexIQ now has ETFs for investors who want to gain liquid, transparent, low cost exposure to Market Neutral (Ticker: QMN), Global Macro (Ticker: MCRO), and Hedge Funds of Funds (Ticker: QAI). We’re very pleased to be the pioneer in yet another area of the alternative investment landscape.”
Since its founding in 2006, IndexIQ has been an innovator in the development and application of liquid alternative index-based investment strategies. IndexIQ has launched a number of first-of-their-kind products, and has emerged as the leader in the “hedge-style” ETF category by assets under management (AUM). Its IQ Hedge Multi-Strategy Tracker ETF (QAI) is the largest “hedge-style” ETF by assets. Other funds launched by IndexIQ in the alternatives space include:
- IQ Alpha Hedge Strategy Fund (IQHIX – Institutional Share Class; IQHOX – Investor Share Class), designed to be a core portfolio holding in the alternative category, and the first open-end, no-load hedge fund replication mutual fund;
- IQ Hedge Multi-Strategy Tracker ETF (NYSE Arca: QAI), designed to be a core holding in the alternative category, and the first US-listed hedge fund replication Exchange-Traded Fund;
- IQ Hedge Macro Tracker ETF (NYSE Arca: MCRO), designed as an equity alternative, and the first Global Macro hedge fund replication ETF.
- IQ Merger Arbitrage ETF (NYSE Arca: MNA), designed as an equity alternative, and the first merger arbitrage ETF;
- IQ Real Return ETF (NYSE Arca: CPI), designed as a cash alternative, and 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;
IndexIQ also has developed ETFs focused on providing real asset exposure, including:
- IQ US Real Estate Small Cap ETF (NYSE Arca: ROOF), the first US 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;
The firm’s international investment strategies include:
- IQ Canada Small Cap ETF (NYSE Arca: CNDA), the first Canada small cap ETF;
- IQ Australia Small Cap ETF (NYSE Arca: KROO), the first Australia small cap ETF; and
- IQ Emerging Markets Mid Cap ETF (NYSE Arca: EMER), the first Emerging Markets mid cap ETF.
IndexIQ is a leading issuer of liquid index-based liquid alternative solutions focused on absolute return, real asset and international strategies. IndexIQ solutions are offered as ETFs, Mutual Funds & Separate Accounts. 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.
Index performance does not reflect charges and expenses associated with the Funds or brokerage commissions associated with buying and selling ETF shares. One cannot invest directly in an index.
The IQ Alpha Hedge Strategy Fund (IQ Fund), the IQ Hedge Multi-Strategy Tracker ETF (IQ Multi-Strategy ETF), the IQ Hedge Macro Tracker ETF (IQ Macro ETF), and the IQ Hedge Market Neutral Tracker ETF (QMN) 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 the IQ Multi-Strategy ETF, the IQ Macro ETF, QMN, 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. QMN is new and has 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.