New York Life Makes ETF Debut With IndexIQ Acquisition

Insurance giant New York Life said its New York Life Investment Management (NYLIM) unit, the company’s third party global asset management business, will acquire exchange traded funds provider IndexIQ for an undisclosed sum.

The deal is expected to close in the first half of 2015. “Upon closing of the transaction, IndexIQ will be integrated into NYLIM and marketed through New York Life’s MainStay Investments platform,” according to a statement issued by the companies.

IndexIQ, the sponsor of ETFs such as the Index IQ Merger Arbitrage ETF (NYSEArca: MNA), IndexIQ US Real Estate Small Cap ETF (NYSEArca: ROOF) and the IndexIQ Canada Small Cap ETF (NYSEArca: CNDA), will add $1.5 billion in assets to MainStay’s $101 billion in assets under management, according to the statement.

New York-based IndexIQ was previously rumored to be a potential target for Goldman Sachs (NYSE: GS). IndexIQ’s largest ETF is the IndexIQ Hedge Multi-Strategy ETF (NYSEArca: QAI). IndexIQ also offers a mutual fund version of QAI (Ticker: IQHIX/IQHOX). [Goldman Could Move on IndexIQ]

“This is a win for IndexIQ, for New York Life, and for investors who need smart solutions to achieve a diverse investment portfolio,” said IndexIQ founder and CEO Adam Patti in the statement. “Pairing our innovative history and experience with New York Life’s commitment, resources, and reach positions us to continue our leadership in the ETF marketplace, accelerate our development of both alternative and smart beta solutions, and together revolutionize the industry.

Five IndexIQ ETFs, including MNA and QAI, are available commission-free Schwab ETF OneSource platform. [Schwab Expands Commission-Free ETF Lineup]

ETF Trends editorial team contributed to this post.

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.