ETF Spotlight on the IQ Hedge Macro Tracker ETF (NYSEArca: MCRO), part of an ongoing series.
Asset: $51.3 million.
Objective: The IQ Hedge Macro Tracker ETF tries to reflect the performance of the IQ Hedge Macro Index, which tries to replicate a combination of hedge fund macro and emerging market strategies. The fund does not invest in hedge funds.
Holdings: Top holdings include: iShares iBoxx Investment Grade Corporate Bond (NYSEArca: LQD) 27.9%, Vanguard Emerging Market ETF (NYSEArca: VWO) 13.1%, iShares Barclays 1-3 Year Treasury Bond Fund ETF (NYSEArca: SHY) 11.8%, iShares MSCI Emerging Market Fund (NYSEArca: EEM) 9.1% and Vanguard Short-Term Bond ETF (NYSEArca: BSV) 8.1%.
What You Should Know:
- Index IQ sponsors the fund.
- MCRO has a total expense ratio of 1.09%.
- The fund has 24 holdings and the top ten make up 91.3% of the overall portfolio.
- The ETF also includes less than 1% hedged exposure to Euro E-mini Futures SEP12, Russell 2000 Mini SEP12 and ProShares VIX Mid-Term ETF (NYSEArca: VXM).
- MCRO is up 0.5% over the last month, down 1.1% over the last three months and up 2.5% year-to-date.
The Latest News:
- According to a press release, June 9 marked the third year anniversary of the MCRO ETF.
- “The last three years have beena roller coaster ride for the markets,” Adam Patti, chief executive officer at IndexIQ, said in the press release. ” While we could not have fully anticipated this when we launched MCRO, the fund was designed as a low volatility vehicle that would provide downside mitigation while allowing an investor to maintain exposure to the global equity markets. We have been pleased to see that it has performed as intended over this period.”
- Hedge funds are raising their bullish commodity positions on speculations of central bank stimulus measures, reports Elizabeth Campbell for Bloomberg.
- “The markets are signaling they expect some kind of central monetary easing,” Peter Sorrentino, a senior fund manager at Huntington Asset Advisors, said in the article. “That tends to bode well for the type of assets that get re-priced very quickly when that happens, and that’s the commodity complex.”
IQ Hedge Macro Tracker ETF
For past stories in this series, visit our ETF Spotlight category.
Max Chen contributed to this article.
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.