Investor Update: New York Life to enter the $2 trillion ETF market (Part 4 of 10)
IndexIQ was founded in 2006 to democratize alternative investments. The firm specializes in liquid alternatives, primarily in ETF wrappers. The firm’s flagship fund, the IQ Hedge Multi-Strategy Tracker ETF (QAI), has come to be known as the S&P 500 (SPY) (IVV) (VOO) of the hedge-fund market.
IndexIQ is well known for its alternative investment strategies. The company also serves as an ETF strategist, providing models and separately managed accounts to advisers.
IndexIQ’s ETF offerings
With $1.5 billion overall assets managed in a dozen funds, IndexIQ has 13 ETFs commanding ~$1.3 billion, including its well-known IQ Hedge Multi-Strategy Tracker ETF (QAI). IndexIQ’s offerings give investors access to liquid alternative products typically reserved for institutional and high-net-worth investors.
The QAI attempts to replicate the risk-adjusted return characteristics of hedge funds using various hedge fund investment styles.
In addition to the QAI, the firm also offers ETFs that:
- Bet on mergers: the IQ ARB Merger Arbitrage ETF (MNA)
- Seek to protect against inflation: the IQ CPI Inflation Hedged ETF (CPI)
- Invest in small real-estate investment trusts: the IQ US Real Estate Small Cap ETF (ROOF)
- Tap the commodity segment: the IQ ARB Global Resources ETF (GRES)
However, the QAI remains key to IndexIQ’s ETF offerings. Next, let’s look at the driving factors for this fund’s growth over the years.
Browse this series on Market Realist: