IndexIQ Bolsters Hedge Fund Replication Suite With Two New ETFs

IndexIQ, the Rye, New York-based exchange traded funds issuer known for its unique suite of hedge fund replication ETFs, bolstered that lineup today with the debuts of the IQ Hedge Long/Short Tracker ETF (NYSEArca: QLS) and the IQ Hedge Event-Driven Tracker ETF (NYSEArca: QED).

IndexIQ has achieved success with hedge fund replication ETFs, such as the IndexIQ Hedge Multi-Strategy ETF (NYSEArca: QAI), which topped $1 billion in assets under management earlier this year.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. [ETFs a Better way to Hedge Funds]

The Index IQ Merger Arbitrage ETF (NYSEArca: MNA) has more than quadrupled in size to $100 million in assets under management over the past year, according to Bloomberg. [Be an MNA Pro With This ETF]

The IQ Hedge Long/Short Tracker ETF IQ Hedge Long/Short Index, an index designed to mirror hedge funds’ long/short strategies. Like other IndexIQ ETFs, QLS features other ETFs among its top holdings. QLS allocates over 42% of its combined weight to the PowerShares Senior Loan Portfolio (NYSEArca: BKLN) and the iShares iBoxx $ Investment Grade Corporate Bond ETF (NYSEArca: LQD). The SPDR S&P 500 ETF (NYSEArca: SPY), the world’s largest ETF, is also a top five holding in QLS, according to IndexIQ data.

QLS’ index beta against the S&P 500 is 0.64 and its dividend yield is 2.94%, according to issuer data. The new ETF charges 0.75% per year.

The IQ Hedge Event-Driven Tracker ETF tracks the IQ Hedge Event-Driven Index, a benchmark designed to mirror hedge funds’ event-driven strategies. QED also implements an ETF of ETFs approach and is heavy on fixed income ETFs.