The IndexIQ Hedge Multi-Strategy Tracker ETF (NYSEArca: QAI), one of the original hedge fund replication ETFs, has topped $500 million in assets under management. QAI tracks the performance of the IQ Hedge Multi-Strategy Index, which mirrors hedge fund investment strategies, including long/short equity, global macro, market neutral, event-driven, fixed income arbitrage and emerging markets.

Hedge fund ETFs have become more prevalent in the recent years, QAI and the WisdomTree Managed Futures Strategy Fund(NYSEArca: WDTI) are among a small number that have proven successful in terms of attracting assets. [Hedge Fund ETFs Not a Big Hit Yet]

“We are seeing tremendous interest in QAI from the financial advisor community, who increasingly are using the fund as their core hedge fund portfolio holding, while QAI also is being added to ETF model portfolios throughout the industry,” said Adam Patti, IndexIQ’s chief executive officer, in a statement.

IndexIQ’s other alternative ETFs include the IndexIQ Hedge Macro Tracker ETF (NYSEArca: MCRO) and the IndexIQHedge Market Neutral Tracker (NYSEArca: QMN).

“There is no question that investors have been confronted with a series of extraordinary challenges over the last few years, ranging from the financial crisis to quantitative easing and the potential impact of Fed tapering,” said Patti. “We believe our funds help solve a real problem faced by many investors who want exposure to the markets but are concerned about volatility and downside risk.”