ETF Spotlight on the IndexIQ Hedge Multi-Strategy Tracker ETF (NYSEArca: QAI), part of an ongoing series.

Assets: $208.5 million.

Objective: The IndexIQ Hedge Multi-Strategy Tracker ETF tries to reflect the performance of the IQ Hedge Multi-Strategy Index, which replicates the risk-adjusted return characteristics of hedge funds by using hedge fund strategies, such as long/short equity, global macro, market neutral, event-driven, fixed-income arbitrage and emerging markets.

Holdings: Top holdings include: iShares iBoxx Investment Grade Corporate Bond (NYSEArca: LQD) 22.0%, iShares Barclays 1-3 Year Treasury Bond (NYSEArca: SHY) 7.2%, iShares MSCI EAFE Index (NYSEArca: EFA) 6.7%, Vanguard Short-Term Bond ETF (NYSEArca: BSV) 6.6% and iShares Russell 2000 Index (NYSEArca: IWM) 5.6%.

What You Should Know:

  • IndexIQ sponsors the fund.
  • QAI has an expense ratio of 1.06%.
  • Sector allocations include: basic materials 5.8%, consumer cyclical 10.1%, financial services 14.4%, real estate 12.5%, communications 3.7%, energy 7.5%, industrials 12.9%, technology 10.7%, consumer defensive 8.8%, healthcare 10.1% and utilities 3.5%.
  • The ETF is up 1.1% over the last month, up 0.9% over the past three months and up 2.8% year-to-date.
  • The fund is 1.2% above its 200-day exponential moving average.
  • QAI tries to mirror the performance of the overall hedge fund universe and provide a low correlation to the equity markets.

The Latest News:

  • According to Bloomberg data, hedge funds posted 0.2% gains in July, but long/short equity and multistrategy managers saw declines, reports Kelly Bit for Bloomberg.
  • In comparison, the MSCI All-Country World Index returned 1.4% last month as.
  • “People are in that cautious watch-and-don’t-do-anything mode,” Emma Sugarman, global head of capital introduction at BNP Paribas SA, said in the article. “We had some pretty intense intra-month volatility.”
  • Hedge funds rose 1.9% in the first seven months of the year, whereas global equities gained 7.5%, with dividends.
  • “During the month of July, what hurt long-short equity managers was low net exposure,” Don Steinbrugge, managing partner of Agecroft Partners LLC, a firm that advises hedge funds and investors, said.

IndexIQ Hedge Multi-Strategy Tracker ETF

For past stories in this series, visit our ETF Spotlight category.

Max Chen contributed to this article.

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