Investors can also take a look at the two other merger arbitrage exchange traded products available: the Credit Suisse Merger Arbitrage Index ETN (NYSEArca: CSMA) and ProShares Merger Arbitrage ETF (NYSEArca: MRGR).

Merger arbitrage ETFs includes stocks of target companies in anticipation of earning a premium paid for the targeted stock once an announced deal closes. Additionally, it takes short positions in some acquirers as a potential hedge in the acquirer’s stock.

MNA has gained 9.1% over the past year while CSMA increased 1.7%. MRGR is off 0.3%.

Index IQ Merger Arbitrage ETF

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