IndexIQ recently cleared the $1 billion in assets milestone as the firm’s alternative ETFs focused on hedge fund strategies and commodities gain traction.
The company’s chief executive in a recent interview said some investors are using its hedge fund, inflation hedged and real estate ETFs as fixed income alternatives in a low-rate environment for bonds.
IndexIQ CEO Adam Patti said these funds include IQ Hedge Multi-Strategy Tracker ETF (NYSEArca: QAI), IQ Hedge Market Neutral ETF (NYSEArca: QMN), IQ Real Return ETF (NYSEArca: CPI) and IQ U.S. Real Estate Small Cap ETF (NYSEArca: ROOF)
The ETFs offer decent yields with lower price volatility than some bonds, while also hedging against a rise in inflation.
IndexIQ is probably best known for its ETFs that attempt to replicate hedge fund strategies, including QAI, IQ Hedge Market Neutral Tracker ETF (NYSEArca: QMN), IQ Hedge Macro Tracker ETF (NYSEArca: MCRO) and IQ Merger Arbitrage ETF (NYSEArca: MNA).