The IndexIQ Hedge Multi-Strategy ETF (NYSEArca: QAI), the largest hedge fund strategy ETF, tries to reflect the risk-adjusted return characteristics of hedge funds through various hedge fund investment styles, such as long/short equity, global macro, market neutral, event driven, fixed-income arbitrage and emerging markets.
QAI is one of the most successful hedge fund replication ETFs with close to $1 billion in assets. The fund uses an ETF of ETFs approach as its major holdings are other ETFs, including well-known fare such as the Vanguard Total Bond Market ETF (NYSEArca: BND) and the PowerShares Senior Loan Portfolio (NYSEArca: BKLN).
QAI, which is nearing its sixth anniversary, is up 3% over the past year.
IndexIQ Hedge Multi-Strategy Tracker ETF
ETF Trends editorial team contributed to this post.