Event-driven hedge fund managers typically invest in a combination of credit opportunities, such as high yield, leveraged loans, and capital structure arbitrage, and event-driven equities, such as risk arbitrage, holding company arbitrage, and special situations, which can include companies under pressure from activist investors, according to IndexIQ.
The SPDR Barclays Convertible Securities ETF (NYSEArca: CWB) commands over 42% of QED’s weight while theVanguard Total Bond Market ETF (NYSEArca: BND) and the iShares Core U.S. Aggregate Bond ETF (NYSEArca: AGG) combine for over 41% of QED’s weight. QED also charges 0.75% per year.
“With the addition of QED and QLS to its family of liquid alternative hedge fund replication vehicles, IndexIQ now offers an ETF designed to track each of the four major hedge fund categories (Event-Driven, Equity Hedge or Long/Short, Market Neutral and Global Macro),” said the issuer in a statement.
In December, 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.
ETF Trends editorial team contributed to this post.