IndexIQ's Patti Discusses Advantages of Alternative ETFs

IndexIQ CEO Adam Patti joined ETF Trends Publisher Tom Lydon at the Morningstar Investment Conference in Chicago to discuss IndexIQ’s growth and the firm’s mission of bringing institutional-quality alternative investments to advisors and investors.

“Liquid alternatives have finally become a much more important part of retail and advisors’ portfolios,” said Patti. “Fortunately for us, we have five-, six-, seven-year track records and lived through some of the biggest drawdowns. Our products are tested.”

The IndexIQ Hedge Multi-Strategy ETF (NYSEArca: QAI), the largest hedge fund strategy ETF, tries to reflect the risk-adjusted return characteristics of hedge funds through various hedge fund investment styles, such as long/short equity, global macro, market neutral, event driven, fixed-income arbitrage and emerging markets.

Patti also noted that, on the equity side, there has been increased interest in the Index IQ Merger Arbitrage ETF (NYSEArca: MNA).

MNA has a six-year track record and merger arbitrage allows advisors to reduce volatility while maintain long equity exposure, said Patti.

Watch the video below to see the full interview.

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