The largest hedge fund ETF saw outsized buying activity late last week, taking the fund’s total assets to nearly $500 million. Low interest rates have made it tough for hedge funds in recent years but they may fare better as rates rise.
In fact, IQ Hedge Multi-Strategy Tracker ETF (NYSEArca: QAI) on Friday saw one of the highest-volume days in its history.
QAI saw a $25 million inflow during the session, according to ETF liquidity provider WallachBeth Capital.
The index-based ETF attempts to replicate the risk-adjusted return characteristics of hedge funds using various hedge fund investment styles, including long/short equity, global macro, market neutral, event-driven, fixed income arbitrage and emerging markets, according to manager IndexIQ.
QAI charges an expense ratio of 0.75% and holds assets of about $474 million. [IndexIQ Gains Momentum in Alternative ETFs]